Under the Community Reinvestment Act, Banks That Cannot Show That

question 10

True/False

Under the Community Reinvestment Act, banks that cannot show that they have complied with the CRA requirements may be prohibited from merging, branching, or engaging in other new areas of business.

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Definitions:

Lowest Wage

The minimum amount of compensation an employer is legally allowed to pay to workers, also known as minimum wage.

Free Market

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.

Market Price

Today's rate at which one can sell or buy a service or asset.

Not Binding

A term used to describe a situation where a constraint or limit (such as a price ceiling or floor) does not affect the equilibrium outcome of the market.