Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 1

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Prepare for the Certified Apartment Portfolio Supervisor Exam with flashcards and multiple choice questions. Each question provides detailed explanations and hints to enhance your learning. Excel in your exam endeavor!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the primary goal of the Community Reinvestment Act (CRA)?

To regulate construction standards for new buildings
To encourage banks to invest in low- to moderate-income communities
To provide tax incentives for real estate developers
To limit the amount of loans banks can give

The correct answer is: To encourage banks to invest in low- to moderate-income communities

The primary goal of the Community Reinvestment Act (CRA) is to encourage banks to invest in low- to moderate-income communities. This legislation was introduced to ensure that financial institutions serve the needs of all communities in which they operate, particularly those that have been historically underserved. By motivating banks to extend credit, offer loans, and invest in these communities, the CRA aims to promote economic growth and stability, increase access to financial resources, and help improve the quality of life for residents in these areas. The focus on supporting low- to moderate-income communities is crucial because it addresses systemic inequalities and fosters inclusive development. This investment not only helps individuals access housing but also stimulates local economies through business development and job creation. The other options do not directly align with the CRA's objectives; rather, they pertain to different regulatory aspects or incentives related to construction and lending practices.