Which of the following statements is true about Regulation B?

Regulation B is part of the Equal Credit Opportunity Act (ECOA) and is designed to prevent discrimination in lending practices. The regulation prohibits discrimination in any aspect of a credit transaction based on several specific characteristics, known as "prohibited bases." These bases include race, color, religion, national origin, sex, marital status, age, and the applicant's reliance on public assistance. Thus, stating that Regulation B prohibits discrimination on seven prohibited bases accurately reflects its purpose and scope. This commitment to ensure equal access to credit is vital in promoting fairness in lending practices and supporting individuals from various backgrounds.

The other statements do not accurately describe Regulation B or its objectives. For instance, promoting discrimination would directly contradict the regulation's purpose. While it is true that banks are encouraged to meet the credit needs of the communities they serve, this initiative is more closely associated with the Community Reinvestment Act rather than the specific mandates of Regulation B. Lastly, Regulation B’s provisions do indeed apply to all aspects of lending, including those related to divorce cases, as they pertain to fair treatment in credit availability and assessment.