1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?
(A) A bank refuses to offer mortgages to consumers in certain neighborhoods. - Incorrect - this is an example of redlining
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications. - Incorrect - this is an example of redlining
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others. - Incorrect
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere. - Correct
Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.- Incorrect
2. Which correctly describes a sequence of events presented in the passage?
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing. - Correct
3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968. --- Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968
BUT redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more.
ii)Providing services based on zip code may be a form of redlining. --
Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15
offer different rates based on zip code. -- In case of auto insurance companies different rates based on zip code is specified. If statement 2 was "Providing
differing services based on zip code may be a form of redlining", then the auto insurance example would have sufficed.
Q1-Can we infer 2 based on "the practice of denying or severely limiting service to customers in particular geographic areas" in the first paragraph and because statement 2 says may be?iii)Access to mortgages is related to higher property values --
With no access to mortgages, residents within the red line suffered low property values and landlord abandonment.
No Mortgages--> Low property values
Q2-So with mortgages, the property values can either remain same or rise. So can we surely say that Access to mortgages is correlated to higher property values?
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