Question

Nancy's lease deed clearly states that she will have to pay $1,250 as rent per month and $2,000 as a one-time payment to secure her performance of duties under the lease. This $2,000 is known as _____.

Answer 1

Answer:

Security Deposit

Explanation:

Security deposit is the correct answer because this is the amount that has been considered by the owner when there is any damage occurs. This amount is paid initially which is more than the monthly payment and refundable when the agreement finishes. In the given question it can be clearly seen that the security money is more than monthly payment of $2000.