Finance
The Community Reinvestment Act (CRA) requires federally insured banks to:
ALend exclusively in minority neighborhoods
BMeet the credit needs of all communities they serve, including low- and moderate-income areas✓ Correct
COffer below-market interest rates on all FHA loans
DReserve 20% of deposits for community development projects
Explanation
The CRA requires depository institutions to meet the credit needs of their entire community, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices. It was enacted partly in response to redlining.
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