_____ is a bank policy that avoids lending in certain areas.

• A. Urban renewal
• B. Zoning
• C. Redlining
• D. Mortgage discrimination

Answer: (C)

Redlining is the practice described. It means a bank refuses to lend, or offers fewer financial services, in certain geographic areas—often those with higher minority populations—based on the neighborhood rather than an individual’s creditworthiness. This creates a pattern where those communities get less investment and homeownership opportunities, fueling segregation and inequality over time. The term comes from the red lines banks would draw on maps to mark areas they considered too risky for lending.

Other terms don’t fit as precisely. Urban renewal focuses on redevelopment projects in cities and can involve displacement, but not specifically a bank’s lending policy. Zoning regulates land use and building types, not banking decisions. Mortgage discrimination is broader and can occur in various forms, but redlining specifically captures the geographic lending restriction that targeted whole neighborhoods.