American Association of Family and Consumer Sciences (AAFCS) Practice Test

Which act prevents discrimination in home selling or financing?

1. Equal Credit Opportunity Act

2. Fair Housing Act

3. Truth in Lending Act

4. Fair Debt Collection Practices Act

The correct answer is: Fair Housing Act

The Fair Housing Act is the legislation that prevents discrimination in home selling or financing. Established in 1968, this act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. It aims to promote equal housing opportunities and ensures that all individuals have the right to access housing without facing bias. This act not only protects individuals from discriminatory practices such as refusing to sell or finance a home but also addresses issues like steering and redlining, ensuring a broader accessibility to housing options for everyone. By enhancing these protections, the Fair Housing Act plays a critical role in advancing social equity and justice within the housing market. In contrast, the other acts mentioned serve different purposes; for instance, the Equal Credit Opportunity Act focuses on preventing discrimination in credit transactions, including loans but does not specifically address home selling. The Truth in Lending Act is geared toward ensuring consumers are provided with clear and comprehensible information about credit terms, while the Fair Debt Collection Practices Act regulates the practices of debt collectors. Each of these acts has its focus, but it is the Fair Housing Act that specifically addresses the prevention of discrimination in housing practices.