When customers have low credit scores,banks often offer them subprime loans that have higher than normal interest rates.If a bank gives three times as many subprime loans to black Americans than to white Americans,even when they have the same credit scores,the bank is guilty of
A) individual discrimination.
B) reverse racism.
C) institutional discrimination.
D) microaggressions.

Question

Quizplus · Accepted Answer

This scenario describes institutional discrimination, as it is a systemic practice within the bank to offer subprime loans with higher interest rates to black Americans at a higher rate than to white Americans, regardless of their credit scores. This results in a disparate impact on a particular group based on their race. Individual discrimination refers to discriminatory actions by specific individuals, while reverse racism and microaggressions are not applicable to this scenario.

When Customers Have Low Credit Scores,banks Often Offer Them Subprime