When Customers Have Low Credit Scores,banks Often Offer Them Subprime

question 41

Multiple Choice

When customers have low credit scores,banks often offer them subprime loans that have higher than normal interest rates.If a bank gives three times as many subprime loans to black Americans than to white Americans,even when they have the same credit scores,the bank is guilty of

• A) individual discrimination.
• B) reverse racism.
• C) institutional discrimination.
• D) microaggressions.

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Definitions:

Ad Valorem

A term describing taxes or duties calculated as a percentage of the value of goods or property.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time frame.