#1
What does CRA stand for in the financial sector?
Community Reinvestment Act
ExplanationPromotes fair lending practices in communities.
#2
In which way does the Community Reinvestment Act (CRA) aim to benefit low- and moderate-income communities?
By promoting economic development and access to credit
ExplanationPromotes economic development and credit access.
#3
When was the Community Reinvestment Act (CRA) enacted?
1980
ExplanationEnacted in 1980.
#4
What is the primary purpose of the Community Reinvestment Act (CRA)?
To promote fair lending practices in communities
ExplanationPromotes fair lending practices in communities.
#5
Which President signed the Community Reinvestment Act (CRA) into law?
Jimmy Carter
ExplanationSigned into law by Jimmy Carter.
#6
What types of financial institutions are covered by the Community Reinvestment Act (CRA)?
Banks, thrifts, and credit unions
ExplanationBanks, thrifts, and credit unions are covered.
#7
What is the purpose of the Community Reinvestment Act (CRA) public disclosure requirement?
To enhance transparency and accountability
ExplanationEnhances transparency and accountability.
#8
What is the purpose of the CRA examination process?
To assess compliance with fair lending practices
ExplanationAssesses compliance with fair lending practices.
#9
Which regulatory agencies enforce the Community Reinvestment Act (CRA) in the United States?
Federal Reserve, FDIC, and OCC
ExplanationEnforced by Federal Reserve, FDIC, and OCC.
#10
What is the purpose of the CRA performance evaluation for financial institutions?
To measure their efforts in meeting the credit needs of the community
ExplanationMeasures institutions' efforts in meeting community credit needs.
#11
What is the significance of the Community Reinvestment Act (CRA) in addressing redlining?
It prohibits redlining practices
ExplanationProhibits redlining practices.
#12
How often are large banks required to undergo a CRA examination?
Every 2 years
ExplanationRequired every 2 years.
#13
Which activities are considered as qualifying under the Community Reinvestment Act (CRA)?
Supporting community development projects
ExplanationSupporting community development projects.
#14
How does the Community Reinvestment Act (CRA) define the assessment area for banks?
Local communities where the bank has a physical presence
ExplanationDefined as local communities with bank presence.