Finance
Under the Community Reinvestment Act (CRA), Iowa financial institutions are evaluated on:
ATheir profitability and stockholder return
BTheir efforts to meet the credit needs of low- and moderate-income communities in their service area✓ Correct
CCompliance with environmental regulations
DThe number of loans made to businesses
Explanation
The CRA requires federal regulators to evaluate how well banks and thrifts meet the credit needs of their entire service area, including low- and moderate-income communities, discouraging redlining.
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