Question \#4 of 20 What is the reasoning MOST lenders gave for "redlining" neighborhoods? A) The redlined communities were heavily populated by blacks and Hispanics. B) Banks were fearful of too many payment defaults from geographic areas. C) All of these. D) The redlined communities were heavily populated by low-income people.

The correct answer is: **C) All of these.** **Explanation:** Redlining was a discriminatory practice employed by lenders, primarily from the 1930s through the late 20th century, where services such as mortgage loans and insurance were withheld from residents of certain areas based on various factors. The justifications provided by lenders for redlining included: 1. **Racial Demographics:** Many redlined neighborhoods were predominantly populated by Black, Hispanic, or other minority communities. Lenders often cited the racial composition as a reason for higher investment risk. 2. **Economic Concerns:** Banks and financial institutions were concerned about the potential for higher default rates in these neighborhoods. They argued that economic instability and lower income levels in these areas increased the likelihood of loan defaults. 3. **Low-Income Populations:** Beyond just racial factors, the economic status of residents in redlined areas was also a significant justification. Lower-income populations were seen as higher-risk borrowers, leading to systemic denial of financial services. Therefore, **all of the provided reasons** were used by lenders to justify redlining practices.