Which term describes refusing to lend or insure in certain areas?

Which term describes refusing to lend or insure in certain areas?

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

Answer: (A)

Redlining is the practice of refusing to lend or insure in certain areas, typically based on the neighborhood’s racial or economic makeup. It captures the idea of denying financial services to residents because of where they live, using geographic classifications rather than evaluating individuals on their own merits. This term specifically describes area-based service denial, which is distinct from blockbusting (stirring fear to prompt sales), steering (guiding buyers to or away from certain areas), or overt discrimination (a broader label for discrimination in general).

Redlining is the practice of refusing to lend or insure in certain areas, typically based on the neighborhood’s racial or economic makeup. It captures the idea of denying financial services to residents because of where they live, using geographic classifications rather than evaluating individuals on their own merits. This term specifically describes area-based service denial, which is distinct from blockbusting (stirring fear to prompt sales), steering (guiding buyers to or away from certain areas), or overt discrimination (a broader label for discrimination in general).