Virginia Real Estate Exam Practice Question
Sandra has to make a quick trip to the bank to deposit multiple checks. Shes already late for an appointment, so instead of depositing her earned money check in the personal account and the checks representing fees paid to the brokerage in the operations account, she puts all the checks into the escrow account, arguing shell sort it out later when she has time. Whats wrong with what Sandra has done?
Correct Answer: C
Rationale: Sandra's action of depositing all checks into the escrow account instead of the appropriate accounts violates financial management principles. The escrow account is intended for holding funds related to specific transactions, not for general deposits. This misallocation can lead to confusion and potential legal issues regarding fund ownership and usage.
Option A incorrectly suggests reliance solely on personal judgment rather than a structured assessment process, which can lead to biased decisions. Option B implies that extending credit despite a low FICO score is acceptable, which may undermine risk assessment protocols. Option D advocates for less weight on past credit issues, which could compromise the integrity of evaluating an applicant's current financial responsibility.
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