Select the correct answer. Which financial transaction is associated with the home rental process? A. down payment B. closing fee C. deposit D. taxes, tags, and title fees Reset Next

Answer 1

Hello!

A down payment, closing fee as well as taxes tags and title fees are associated with the BUYING and SELLING of a house or property. The deposit, however, is associated with renting. Thus, the answer is C!

What is a deposit:

The deposit is a set amount of money that is given to the landlord to hold in the event that the renter causes damages to the property. There are many types of deposits, including separate ones for having a pet. The deposit is not only fully refundable but it accrues interest as the landlord holds the money. So, if you have a deposit of 1,000 dollars and you rent the place for 1 year, the deposit is supposed to accrue interest (usually 3%) so assuming no damages, you should expect 1,030 dollars to be given to you when you move out!