Questions: The refusal of a lending institution to make a residential real estate loan strictly because of the racial or ethnic composition of the neighborhood is called Select one: a. blockbusting. b. panic peddling. C. steering. d. redlining.

The answer is D: redlining.

Explanation for each option:

a. Blockbusting: This term refers to the practice where real estate agents and developers persuade property owners to sell their houses at low prices by instilling fear that racial minorities will soon be moving into the neighborhood, which they claim will decrease property values. This is not related to the refusal of loans based on neighborhood composition.

b. Panic peddling: This is another term for blockbusting. It involves inducing homeowners to sell their properties by suggesting that the entry of a particular race or ethnic group into the neighborhood will lead to a decline in property values. Again, this does not pertain to the lending practices of financial institutions.

c. Steering: This practice involves real estate agents guiding prospective home buyers towards or away from certain neighborhoods based on their race or ethnicity. While it is a discriminatory practice, it is not related to the refusal of loans by lending institutions.

d. Redlining: This is the correct term for the practice where lending institutions refuse to make loans for the purchase of homes in certain neighborhoods based on the racial or ethnic composition of those areas. The term originated from the practice of drawing red lines on maps to delineate areas where banks would not invest.

Thus, the correct answer is D: redlining.