Question

The CRA requires that lenders meet their local communities needs first by lending to low to moderate income families for:

A. Providing affordable housing options
B. Supporting small businesses in the area
C. Offering financial education and counseling
D. Promoting community development initiatives

Answer 1

The CRA requires lenders to meet their local communities' needs by lending to low to moderate income families for affordable housing options, supporting small businesses, providing financial education and counseling, and promoting community development initiatives.

Step-by-step explanation:

The CRA requires that lenders meet their local communities needs first by lending to low to moderate income families for:

1. Providing affordable housing options: Lenders are encouraged to offer loans to low to moderate income families to help them purchase affordable homes.
2. Supporting small businesses in the area: Lenders are encouraged to provide loans to low to moderate income entrepreneurs who wish to start or expand small businesses in the community.
3. Offering financial education and counseling: Lenders are expected to provide financial education and counseling services to help low to moderate income families make informed financial decisions.
4. Promoting community development initiatives: Lenders are encouraged to support community development projects that aim to improve the overall well-being of the local community.