Kentucky CE Shop Practice Exam

The Kentucky Real Estate Education, Research, and Recovery Fund must carry a minimum balance of ______.

$400,000 $1 million $200,000 $500,000

Correct Answer:

$400,000

Explanation:

The main idea is that the Real Estate Education, Research, and Recovery Fund must maintain a cash reserve to respond to consumer claims and support its activities. The required minimum balance is four hundred thousand dollars, set to ensure the fund can meet obligations even after significant claims. Maintaining this reserve helps keep the fund solvent and capable of paying approved recovery claims and funding related programs. If the balance drops below that level, the Commission can take steps to restore it, such as adjusting license fees or assessments. The other dollar amounts don’t meet the statutory reserve level, so they aren’t correct.

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