Earnest Money Is the Sum of Money the Home Buyer

question 161

Multiple Choice

Earnest money is the sum of money the home buyer pledges with the:

• A) realtor to view homes.
• B) realtor for finding the desired home.
• C) lender to originate the loan.
• D) seller to indicate intent of purchase.
• E) lender to guarantee the purchase.

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Definitions:

Halo Effect

A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences their feelings and thoughts about that entity's character or properties.

Primacy

The principle that the first items presented in a series are more likely to be remembered than those that follow.

Recency

The principle that the most recently presented items or experiences are likely to be remembered best.

Prototype

In person perception, an abstraction that represents the “typical” or quintessential instance of a class or group.