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.

---

Definitions:

Demand Curves

Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers.

Industry Entry

The process by which new competitors join an industry, often bringing innovation or increased competition.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Economic Profit

The gap between the total income and the sum of all expenses, covering both direct and indirect costs.