Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A family in a redlined area has difficulty obtaining a mortgage, limiting their ability to purchase a home and build equity.
B
A family in a diverse neighborhood receives multiple loan offers from banks, allowing them to easily invest in property.
C
A government program is introduced that provides financial assistance to all families, regardless of their neighborhood.
D
A community organization develops a successful initiative to increase homeownership rates specifically for white families.
Understanding the Answer
Let's break down why this is correct
Answer
Redlining was a practice where banks and insurance companies denied services to people in certain neighborhoods, often based on race. This meant that many Black families could not get loans to buy homes, while white families could. Over time, this led to a significant gap in wealth because owning a home is one of the main ways people build wealth. For example, a Black family that was denied a mortgage in the 1930s missed out on years of home appreciation and the financial security it brings, while a white family in the same area could benefit from rising property values. As a result, this unfair practice has contributed to lasting racial wealth inequality that still affects communities today.
Detailed Explanation
Redlining makes it hard for families in certain areas to get loans. Other options are incorrect because This option suggests that living in a diverse area guarantees easy loans; This option implies that financial help for all families solves inequality.
Key Concepts
Redlining
Racial Wealth Inequality
Homeownership
Topic
Impact of Redlining on Inequality
Difficulty
medium level question
Cognitive Level
understand
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