The Refusal to Make Loans or Issue Insurance in Certain

question 21

Multiple Choice

The refusal to make loans or issue insurance in certain neighborhoods based on the racial composition or average income in the neighborhood,regardless of the characteristics of the individual homeowner is called:

• A) Restrictive covenant
• B) Redlining
• C) Racial steering
• D) Blockbusting

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Definitions:

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit.

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the present value of its expected cash flows minus the initial investment.

Cost Savings

The reduction in expenses achieved by improving efficiency, productivity, or reducing waste, often without compromising quality or performance.

Acquisition Cost

The total cost that a company recognizes on its financial statements for acquiring an asset or taking over another business.