Which statement is true regarding the disclosure of balance information?

The statement that disclosure must clarify how the balance is determined to avoid fees or obtain the Annual Percentage Yield (APY) is true because the Truth in Savings Act (TISA) mandates transparency in financial product disclosures. This is essential to ensure consumers understand how their balances are calculated, what fees may apply based on their balances, and how those balances affect the earning potential of their accounts, such as qualifying for a certain APY. Clear disclosure helps consumers make informed decisions and prevents any misunderstanding that could lead to unintended fees or reduced interest earnings.

The requirement for clarity in balance determination supports consumers' ability to manage their accounts effectively. Providing detailed information about how balances are computed and the implications for any applicable fees or interest rates fosters consumer confidence and enhances their financial literacy.