The 1995 Modifications to the Community Reinvestment Act

question 486

Multiple Choice

The 1995 modifications to the Community Reinvestment Act

• A) imposed numeric goals for loans extended to low-income and minority groups that were difficult for many banks to meet without reducing loan standards.
• B) reduced the incentive of banks to extend loans to low-income and minority groups.
• C) encouraged low-income and minority housing purchasers to make larger down payments so they would have more equity in their houses.
• D) made it more difficult for low-income and minority groups to obtain conventional loans.

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Definitions:

Open-Economy Macroeconomic Model

A framework used in economics to analyze the interactions between a country's economy and the international market, focusing on trade flows, exchange rates, and capital movements.

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The money available for borrowing in an economy, influenced by savings and investments.

National Saving

The total amount of savings generated within a country, including both private and public savings.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.