Financial Discrimination Quiz 1

Subprime loans (now marketed as non-prime loans) are a form of predatory lending, because they... (select all that apply)

• charge higher interest rates to compensate for higher risk of default

• are designed to make payments difficult or impossible

• are purposely marketed towards Black Americans and minorities in the U.S. 

• take a person's economic status into account, not their race

What role did the Freedman's bank play for Black Americans?

• The bank refused to extend loans to Black Americans and ended up having to close due to poor investments.

• The bank only offered accounts that earned 0% interest to Black Americans. 

• The bank required extensive background checks for Black Americans before they could open accounts. 

• The bank refused to serve Black Americans who lived outside of a specific mile radius. 

While "Black Capitalism" encouraged supporting Black entrepreneurs and Black-owned banks, why was it a poor decision on the country's part? (Select all that apply)

• Black Capitalism asked corporations to voluntarily support Black-owned banks. 

• Black Capitalism didn't address the underlying systemic problems that caused the disparities between white and Black Americans. 

• Black Capitalism did not take Civil Rights Leaders' recommended solutions into account. 

• Black capitalism was a band-aid solution to the racial disparities

Someone's net worth is:

• Their assets

• Their assets minus their liabilities

• Their liabilities minus their assets

• Their bank account balance

A liability is:

• Any outstanding debts you owe

• Your tax credits

• All of your paycheck deductions

• Your retirement account

Use the image to order the median net worth from least to greatest:

• White with a Bachelor's degree

• Other with a Bachelor's degree

• Black with a Bachelor's degree

• White with no Bachelor's degree

• Hispanic with a Bachelor's degree

Why was the 40 Acres and a Mule policy reversed?

• The land was not available

• Civil Rights leaders advised against it

• Congress wanted to lower the deal to 20 acres

• President Johnson wanted to appease the confederacy

In U.S. history, most calls for reparations have not been realized:

• True

• False

Through 1934 - 1968 how many home loans were given to White families vs non-White families

• 2% White vs 98% non-White

• 20% White vs 80% non-White

• 50% White vs 50% non-White

• 98% White vs 2% non-White

According to this article, what is a long term effect of redlining?

• It keeps certain areas of the country underdeveloped and rural.

• It reinforces the segregation of neighborhoods in large cities.

• It makes it difficult for the government to help minority groups find affordable housing.

• It has generational impact on families who were not able to purchase homes decades ago.