Refusing to make loans or issue insurance policies in certain areas is known as

Refusing to make loans or issue insurance policies in certain areas is known as

• A. Redlining
• B. Steering
• C. Blockbusting
• D. Discrimination

Answer: (A)

Refusing to make loans or issue insurance policies in certain areas is redlining. This is a discriminatory practice that denies or limits access to housing-related financial services based on the location of the property rather than an individual's qualifications, typically targeting neighborhoods with minority residents. It’s illegal under federal fair housing laws because it preserves segregation and blocks equal opportunity in housing and finance. Think of the other terms as describing different discriminatory tactics: steering involves guiding buyers toward or away from particular neighborhoods; blockbusting involves exploiting fears of demographic change to induce sales; discrimination is a broad label for unfair treatment but doesn’t specify the geographic denial that defines redlining. So the best term for this scenario is redlining.

Refusing to make loans or issue insurance policies in certain areas is redlining. This is a discriminatory practice that denies or limits access to housing-related financial services based on the location of the property rather than an individual's qualifications, typically targeting neighborhoods with minority residents. It’s illegal under federal fair housing laws because it preserves segregation and blocks equal opportunity in housing and finance.

Think of the other terms as describing different discriminatory tactics: steering involves guiding buyers toward or away from particular neighborhoods; blockbusting involves exploiting fears of demographic change to induce sales; discrimination is a broad label for unfair treatment but doesn’t specify the geographic denial that defines redlining. So the best term for this scenario is redlining.