What is the purpose of Regulation DD?

Regulation DD is primarily designed to protect consumers in transactions involving deposit accounts, which includes savings accounts, checking accounts, and certain other types of deposit accounts. This regulation requires financial institutions to provide clear and consistent disclosures regarding the terms and conditions of these accounts, including interest rates, fees, and other important information that consumers need to make informed decisions.

By ensuring that consumers receive accurate and transparent information, Regulation DD aims to enhance consumer understanding and facilitate comparison between different financial products, thereby promoting fair competition among financial institutions. This consumer protection focus is fundamental to the intent of the Truth in Savings Act, which embodies the principles of transparency and informed financial decision-making.

The other options do not accurately reflect the scope or purpose of Regulation DD. The regulation is not limited to savings and loan associations, nor does it address borrowing limits or govern mutual fund performance, which are covered by other regulations.