7.1 Discrimination in Finance Exit Slip

1. What is the racial wealth gap?

• 1. The difference between accounts held at Black-owned banks vs. white-owned banks

• 1. A hypothetical difference in financial wealth between Black and white Americans

• 1. The difference in financial wealth between white Americans and communities of color in the United States

• 1. The difference in saving account interest rates that Black Americans earn vs. white Americans

2. 
   The eventual outcome of 40 Acres & a Mule is an example of how the United States government…

• 1. Prevented the recovery and wealth-building of formerly enslaved people after the Civil War

• 1. Succeeded in helping formerly enslaved people by giving them vast amounts of land

• 1. Implemented anti-discriminatory policies against formerly enslaved people

• 1. Prioritized the wellbeing of formerly enslaved people so that they could prosper in society

3. All of the following are true about reparations EXCEPT…

• 1. Reparations often come in the form of payments made to the communities who were wronged

• 1. Reparations may include making systemic changes that benefit the communities who were racially discriminated against

• 1. Reparations are often requested by community leaders and activists but rarely realized

• 1. Reparations are a way to completely undo the harmful effects of the racially discriminatory practices and policies that took place

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

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

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

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

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

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

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

• 1. are designed to make payments difficult or impossible

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

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