Laws & AgencyQuestion 31 of 120
A lender's refusal to make loans in certain geographic areas regardless of an applicant's qualifications is known as:
a.Redlining
b.Steering
c.Blockbusting
d.Novation
Explanation
Redlining is the discriminatory denial of loans or insurance in specific neighborhoods, often based on the racial composition of the area. California's Holden Act specifically prohibits this practice by financial institutions. It illegally restricts access to credit and housing.
Law Reference: CA Government CodePractice all 120 questions free — no signup required.
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