Finance
Under the federal Community Reinvestment Act (CRA), Massachusetts banks are encouraged to:
ADeny loans to applicants in low-income areas
BMeet the credit needs of all communities in their service area, including low-income neighborhoods✓ Correct
CInvest only in high-net-worth markets
DFund only residential loans, not commercial
Explanation
The Community Reinvestment Act (CRA) requires that FDIC-insured depository institutions meet the credit needs of all communities they serve, including low-income and minority neighborhoods. CRA ratings affect bank merger and branch opening approvals.
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