Finance
Under the Community Reinvestment Act (CRA), how does the federal government measure a bank's compliance in Minnesota?
ABy counting the number of loans made to minority borrowers
BBy evaluating the bank's record of lending, investment, and services in low- and moderate-income communities within its assessment area✓ Correct
CBy reviewing the bank's commission structure for loan officers
DBy auditing the bank's trust department
Explanation
Federal regulators (OCC, Federal Reserve, FDIC) evaluate CRA compliance by examining the bank's lending activity, community development investments, and services in low- and moderate-income communities within its defined assessment area. CRA ratings affect regulatory approval of mergers and expansions.
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