Question

Broker Jake opens an Oklahoma escrow account. Which of the following is true of the account?

A. Jake must be a signor on the account.
B. It must be insured.
C. It cannot be an interest-bearing account.
D. It cannot be a certificate of deposit account.

Answer 1

The correct answer is C. It cannot be an interest-bearing account. An escrow account is a financial arrangement where a third party holds and regulates the payment of funds for two parties involved in a transaction.

Step-by-step explanation:

The correct answer is C. It cannot be an interest-bearing account.

An escrow account is a financial arrangement where a third party holds and regulates the payment of funds for two parties involved in a transaction. In the context of a real estate transaction, an escrow account is opened to hold the buyer's earnest money deposit until the closing of the sale.

Since the purpose of an escrow account is to securely hold funds, it is typically not an interest-bearing account. This means that the money in the account does not earn interest over time. The primary goal of the escrow account is to ensure the safe and timely transfer of funds between the parties involved.