Multiple choice

Money placed in the hands of a third party until specified conditions are met is known as

  1. endorsement

  2. escrow

  3. depreciation

  4. copayment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Money, securities, funds and other assets can all be held in escrow.

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