The term redlining refers to which practice?

• A. The act of drawing large red lines on maps
• B. Denying financial services to residents of a specific area based on race or ethnicity
• C. Requiring redline compliance in mortgages
• D. Reassessing property values by redline zones

Answer: (B)

Redlining is the discriminatory denial or limitation of financial services—such as mortgages, loans, or insurance—to people living in certain neighborhoods because of the area’s racial or ethnic composition. The term comes from the red marks lenders and federal agencies once placed on maps to designate those neighborhoods as high risk, effectively cutting residents off from financing and investment. This practice reinforced segregation and helped create lasting wealth gaps, since homeownership is a major way families build wealth. Today redlining is illegal under the Fair Housing Act and related laws, though its effects linger.

The other ideas don’t capture this core behavior: the act of marking maps is part of the tactic, but redlining is defined by denying services based on neighborhood demographics, not merely drawing lines or enforcing a rule or revaluing property.