In the Case Where Landlords Require Tenants to Pay Security

question 22

Multiple Choice

In the case where landlords require tenants to pay security deposits:

• A)the landlord is the agent and the tenant is the principal
• B)the landlord is the principal and the tenant is the agent
• C)both the landlord and the tenant are agents
• D)both the landlord and the tenant are principals

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Definitions:

Monthly Rate

The interest rate or other fees assessed on a monthly basis, often used in loans and financial agreements.

Student Loan

A loan offered to students which is used to pay off educational expenses and is repayable after graduation, typically with interest.

Withdraw

To remove funds from a bank account or investment, or to retract from participation in an activity or agreement.

Compounds Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.