Finance
Under the Community Reinvestment Act (CRA), what are banks required to do?
AMake loans exclusively to low-income borrowers
BMeet the credit needs of their entire community, including low and moderate-income neighborhoods✓ Correct
COffer below-market interest rates to first-time buyers
DSet aside 10% of deposits for community development loans
Explanation
The Community Reinvestment Act (CRA) requires federally insured banks to serve the credit needs of all segments of their community, including low and moderate-income areas. Banks are periodically examined for CRA compliance, and their CRA rating can affect their ability to expand or merge. CRA does not mandate specific interest rates or loan percentages — just equitable service.
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