Finance

In South Dakota, the 'Community Reinvestment Act' (CRA) requires federally regulated financial institutions to:

AProvide loans at below-market rates to low-income borrowers
BMeet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods✓ Correct
CFund community improvement projects as a condition of operation
DRequire community approval for new branch locations

Explanation

The CRA requires federal financial institution regulators to assess whether banks meet the credit needs of their entire community, including low- and moderate-income neighborhoods. Banks that fail CRA exams may face restrictions on expansion and other regulatory actions.

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