Michigan Real Estate Exam Practice Question
A broker's trust account is often used to hold:
Correct Answer: D
Rationale: A broker's trust account is specifically designed to securely hold funds on behalf of clients, primarily for transactions related to real estate.
Option A, instalment payments, while relevant in some contexts, do not typically fall under the primary use of a broker's trust account.
Option B, interest on a bank, is not applicable as trust accounts are not meant to earn interest for the broker or the bank.
Option C, work back via attending brochure, is unrelated to financial transactions and does not pertain to the purpose of a trust account.
Option D accurately reflects the primary function of such accounts, which is to hold earnest money deposits and insurance payments, ensuring funds are managed responsibly during transactions.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now