If a lender practices redlining, which practice are they employing?

Redlining refers to the discriminatory practice where lenders refuse to provide loans or mortgage financing to people based on where they live, particularly in neighborhoods predominantly occupied by minority communities. This practice effectively excludes certain areas from access to credit, which is often influenced by the racial or ethnic demographics of those areas.

Therefore, when a lender is engaging in redlining, they are specifically refusing to lend based on racial demographics. This behavior not only reinforces systemic inequalities but also has long-lasting effects on community development and social mobility, as individuals in these areas are often denied opportunities for home ownership and investment.

The other choices do not accurately reflect the definition of redlining: providing loans regardless of geography, offering higher interest rates across the board, and ensuring equal lending regardless of location all describe practices aimed at equitable lending and do not indicate discrimination based on racial demographics.