In the context of GLBA, which term describes an individual who obtains a financial product or service for personal, family, or household purposes?

Study for the Entity Operations Compliance Exam. Test your knowledge with flashcards and multiple choice questions. Each question includes hints and explanations to help you prepare confidently. Get exam-ready and enhance your compliance skills!

The term "Consumer" is the correct choice because, in the context of the Gramm-Leach-Bliley Act (GLBA), it specifically refers to an individual who acquires a financial product or service primarily for personal, family, or household purposes. This definition is particularly relevant in discussions regarding privacy and data protection, as the GLBA establishes certain requirements for financial institutions to follow in order to protect the personal information of consumers.

Understanding the distinction is crucial, as the terms "Customer," "Account Holder," and "Client" have different implications under the GLBA. For instance, a "Customer" typically refers to someone who has an ongoing relationship with a financial institution and engages in transactions related to financial services. An "Account Holder" denotes an individual with an account at a financial institution, while "Client" can often suggest a more formal relationship, usually in the context of professional services. These distinctions highlight why "Consumer" is the appropriate term when referring to individuals using financial services for non-business purposes under the GLBA.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy