Fair Housing

Blockbusting is defined as:

ARefusing to make loans in certain neighborhoods based on racial composition
BInducing homeowners to sell by making representations about the entry of protected classes into the neighborhood✓ Correct
CDirecting buyers toward or away from neighborhoods based on race
DRefusing to show properties in certain areas to protected class members

Explanation

Blockbusting (also called panic selling) is the illegal practice of inducing property owners to sell or rent by making statements about the entry or prospective entry of persons of a protected class into the neighborhood, suggesting property values will decline.

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