What is the practice of redlining?

Redlining refers to the practice of refusing loans or insurance to residents of certain areas, often based on racial or ethnic demographics. This term originated from the use of red ink to outline neighborhoods on maps where lenders would not offer loans, indicating which areas were deemed too risky for investment. This discriminatory practice has had long-lasting effects on communities, perpetuating inequality by limiting access to financial services for residents in those areas. The choice that reflects this definition correctly highlights how this practice is targeted at specific geographic regions rather than individuals solely based on income or other lawful criteria.

The other options mention lawful lending restrictions, marketing strategies, and evaluation methods, but these do not accurately describe redlining, which specifically involves the denial of financial services based on location and the demographics of those living in those areas rather than their economic status or property values.