The Community Reinvestment Act (CRA) encourages lenders to meet the credit needs within the communities they serve, including those designated as low- and moderate-income. Larger banks often use innovative strategies to meet community needs under the definition of community development. Because such efforts can be time-consuming and complex, CRA Officers must be able interpret how the CRA may apply to countless everyday banking scenarios.
This is one of a six-part quiz series designed to test your knowledge of the CRA. Our series aims to simplify some of the complexities inherent in this nearly 50-year-old law.
Scenario
A branch manager provides budget advice to a local education nonprofit in a middle-income census tract. The nonprofit aims to increase access to child care and early learning opportunities to help children from low-income families succeed in public schools.
