The Gerad Company has decided to build their new factory in an area of the city that is considered a problem area. When they applied for a loan at the bank, they were refused. The refusal of this loan is an example of ________.
A) redlining
B) reinvestment
C) enterprise zoning
D) bureaucratic business

Question

Quizplus · Accepted Answer

This is an example of redlining, which is when banks or other lending institutions refuse to provide loans or services to individuals or businesses based on the location of their property in a certain area, often because it is considered a high-risk or low-income area.

The Gerad Company Has Decided to Build Their New Factory