What type of discrimination does the term "Redlining" refer to?

Redlining refers specifically to discriminatory practices in lending and insurance that have historically targeted racial or ethnic demographics, particularly affecting African American communities and other minority groups. The term originated in the 1930s when lenders would outline neighborhoods on maps using red ink, marking areas where they deemed it too risky to invest or provide loans, primarily based on the racial composition of those neighborhoods rather than the economic viability of the properties.

This practice effectively barred residents of those neighborhoods from obtaining mortgages, homeowners’ insurance, and other financial services, contributing to systemic inequities in wealth accumulation and access to housing opportunities. As a result, redlining has had long-lasting effects on communities, perpetuating cycles of poverty and limiting access to quality housing and resources based on race and ethnicity.

While other options touch on various aspects of discrimination and lending practices, they do not capture the historical context and specific implications of redlining, which fundamentally involves racial and ethnic discrimination.