Finance
In South Carolina, what is the purpose of the 'Community Reinvestment Act' (CRA)?
ATo rebuild communities after natural disasters
BTo encourage banks to meet the credit needs of all communities, including low-to-moderate income neighborhoods✓ Correct
CTo reinvest property taxes into community improvements
DTo require real estate agents to work in underserved communities
Explanation
The CRA (1977) requires banks and thrifts to meet the credit needs of all communities in their service area, including low-to-moderate income (LMI) neighborhoods, while maintaining safe and sound banking practices. CRA compliance is evaluated by regulators.
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