What redlining practice describes denying financial services to residents of certain areas based on race?

• A. Zoning restrictions
• B. Gentrification
• C. Predatory lending
• D. Redlining

Answer: (D)

Redlining is the practice of denying or limiting financial services—such as mortgages or insurance—to residents of certain neighborhoods based on race. Historically, lenders and government agencies drew maps that colored areas with minority populations as high risk, leading to systematic denial of loans and other services in those communities and helping to enforce segregation and wealth gaps across generations. This differs from zoning, which is about local land use rules; gentrification, which involves neighborhood change due to investment and displacement; and predatory lending, which involves unfair loan terms offered to borrowers, not geographic decisions tied to race. So the scenario described matches redlining.