Finance
The Community Reinvestment Act (CRA) requires federally regulated lenders to:
AMake loans only to high-income borrowers
BMeet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods✓ Correct
CMaintain reserves equal to 10% of outstanding loans
DReport all loan applications to the LREC
Explanation
The CRA requires federally insured banks and thrifts to meet the credit needs of their entire communities — including low- and moderate-income neighborhoods — countering redlining and ensuring fair access to credit.
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