Finance
Under the Community Reinvestment Act (CRA), financial institutions are encouraged to:
ARestrict lending to low-risk neighborhoods
BMeet the credit needs of the communities they serve, including low- and moderate-income areas✓ Correct
CCharge higher rates in high-risk areas
DOnly make loans to owner-occupants
Explanation
The CRA requires federally insured financial institutions to help meet the credit needs of the communities where they operate, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices.
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