Final answer:
Redlining is the refusal to offer loans or services in minority-dominated neighborhoods, which exacerbates economic disparities and neighborhood decline, despite being illegal.
Step-by-step explanation:
If a lender does not approve loans in an area of minority concentration because of a perceived increased risk of default, this is an example of redlining. Redlining is the discriminatory practice where services, like loans and insurance, are denied to residents of certain areas based on racial or ethnic composition. Despite the Fair Housing Act of 1968 that aimed to outlaw such practices, evidence suggests it still occurs, perpetuating a legacy of economic disparity and neighborhood decline.