5
lesson pretestMultiple Choice

Pretest

Question 5 • US History Studies Since 1877

President Carter’s Community Reinvestment Act

Answer
A
encouraged banks to lend in low- and moderate-income areas.
B
encouraged the wealthy to invest in suburban areas.
C
encouraged banks to charge more interest on loans.
D
encouraged the wealthy to take out more loans.

Explanation

The Community Reinvestment Act, signed by President Carter in 1977, encouraged banks to help meet the credit needs of the communities where they operated, including low- and moderate-income neighborhoods. It did not specifically encourage wealthy people to borrow or invest, or tell banks to charge higher interest rates. Therefore, the correct choice is “encouraged banks to lend in low- and moderate-income areas.”

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