Banks often offer customers with low credit scores subprime loans that have higher-than-normal interest rates. What is the bank guilty of if it gives three times as many subprime loans to black Americans than to white Americans even when they have the same credit scores?

Question

Quizplus · Accepted Answer

The bank is guilty of institutional discrimination, as they are following a pattern or practice that disproportionately affects one group over another. This type of discrimination is not necessarily intentional, but it still has a discriminatory impact on certain groups.

Banks Often Offer Customers with Low Credit Scores Subprime Loans