The Purpose of a Security Deposit Is To

question 103

Multiple Choice

The purpose of a security deposit is to:

• A)pay for any damages that may occur during the lease period.
• B)cover the costs of utilities.
• C)pay for the tenant's portion of real estate property taxes.
• D)cover increases in monthly rent.
• E)meet government housing regulations for a safe building.

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Definitions:

Depository Institutions Deregulation

The reduction or elimination of government regulations on banks and similar institutions to foster a more efficient and competitive financial environment.

Checking Accounts

Bank accounts that allow depositors to write checks against deposited funds for payments to third parties.

Reserve Requirements

Regulations set by central banks that determine the minimum amount of reserves a bank must hold against deposits, affecting the money supply.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance government spending, including bonds, bills, and notes.