What does the Community Reinvestment Act require from financial institutions insured by the FDIC?

The Community Reinvestment Act (CRA) mandates that financial institutions insured by the FDIC engage in activities that support the revitalization and investment in their local communities, particularly in low- and moderate-income neighborhoods. This requirement encourages lenders to meet the credit needs of the entire community, not just certain segments like high-income areas. The intention is to combat redlining and ensure that access to banking services and credit opportunities is equitable and inclusive for all members of the community.

In this context, the correct option emphasizes the broader role financial institutions play in enhancing community development and economic stability, rather than simply focusing on profit maximization or limiting their services. This aligns with the CRA's goal of fostering responsible lending and investment practices that contribute positively to community welfare.