The money deposit made by the buyer to the seller of real estate during negotiation stage is known as ________________.

Earnest Money Deposit

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Fixed Deposit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Current Deposit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Earnest Money Deposit
The money deposit made by the buyer to the seller of real estate during negotiation stage is known as Earnest Money Deposit. An earnest money deposit can be referred as a specific form of security deposit made in some major transaction. It is done by the applicant to show his willingness to complete the transaction.

Suggest Corrections

Similar questions

Q. Consider the following statements:
1. Whenever a bank grants a loan, it creates a deposit or a liability against itself.
2. Deposits of the bank circulate as money, the creation of such deposits lead to a net increase in the money stock.
3. Whenever a bank grants a loan, it creates a loan.
Which of the statement(s) given above is/ are correct?

When a buyer returns goods to the seller, he sends a _______ as intimation to the seller of the amount and quantity being returned and requesting the return of money. Whereas when a Seller receives goods (returned) from the buyer, he prepares and sends a _______ as intimation to the buyer showing that the money for the related goods is being returned in the form of a credit note.

Q. When the public deposits money in a bank, it lends the deposit as credit. What is this credit known as?

Q. The fixed deposit scheme is one where you need to deposit money for a fixed period of time for a interest rate.

Q. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as ________.

Join BYJU'S Learning Program