The CE Shop » Sales License » CA Real Estate Principles Course » 2021

Question #1

What's a reserve fund?

A. A specified number of months' worth of property tax and insurance funds that have been set aside

B. An account brokers use to pay commissions to licensees

C. The amount of money lenders keep on hand

D. The amount of money a bank reserves for mortgage lending

Question #2

What often comprises the sum total of a buyer’s mortgage payment?

A. Principal, interest, and taxes

B. Principal, interest, taxes, and insurance

C. Principal and interest

D. Principal and taxes

Question #3

Who or what determines the amount that can be set aside in reserve funds?

A. Lenders

B. Builders

C. Borrowers

D. Federal regulations

Question #4

A reserve fund may also be called a(n) ______ account.

A. Escrow

B. Taxable

C. Insurance

D. Additional