Which statement about CFPB creation is correct?

Which statement about CFPB creation is correct?

• A. It was created by the Financial Stability Act
• B. It is established by the Dodd-Frank Act and the Consumer Financial Protection Act
• C. It was created by the Federal Reserve
• D. It is not a government agency

Answer: (B)

The creation of the CFPB comes from the Dodd-Frank Wall Street Reform and Consumer Protection Act, specifically through the Consumer Financial Protection Act it contains. This act established the CFPB as a federal agency tasked with protecting consumers in financial markets, with its own funding and authority separate from the Federal Reserve. So the statement that it was created by the Dodd-Frank Act and the Consumer Financial Protection Act is the accurate description of its origin. It wasn’t created by a Financial Stability Act, nor by the Federal Reserve, and it is indeed a government agency dedicated to consumer protection in financial services.

The creation of the CFPB comes from the Dodd-Frank Wall Street Reform and Consumer Protection Act, specifically through the Consumer Financial Protection Act it contains. This act established the CFPB as a federal agency tasked with protecting consumers in financial markets, with its own funding and authority separate from the Federal Reserve. So the statement that it was created by the Dodd-Frank Act and the Consumer Financial Protection Act is the accurate description of its origin. It wasn’t created by a Financial Stability Act, nor by the Federal Reserve, and it is indeed a government agency dedicated to consumer protection in financial services.