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

Question #1

What's a reserve fund?

A. The amount of money lenders keep on hand

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

C. An account brokers use to pay commissions to licensees

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 and interest

B. Principal, interest, taxes, and insurance

C. Principal, interest, and taxes

D. Principal and taxes

Question #3

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

A. Lenders

B. Federal regulations

C. Builders

D. Borrowers

Question #4

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

A. Escrow

B. Additional

C. Taxable

D. Insurance