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

Question #1

What's a reserve fund?

A. An account brokers use to pay commissions to licensees

B. The amount of money lenders keep on hand

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

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 and interest

C. Principal and taxes

D. Principal, interest, taxes, and insurance

Question #3

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

A. Lenders

B. Borrowers

C. Federal regulations

D. Builders

Question #4

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

A. Taxable

B. Insurance

C. Additional

D. Escrow