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

Question #1

What's a reserve fund?

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

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

C. The amount of money lenders keep on hand

D. An account brokers use to pay commissions to licensees

Question #2

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

A. Principal, interest, taxes, and insurance

B. Principal and interest

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. Borrowers

B. Lenders

C. Federal regulations

D. Builders

Question #4

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

A. Insurance

B. Additional

C. Escrow

D. Taxable