DC Property Manager (PM) Practice Exam 2026 - Free Property Management Practice Questions and Study Guide

The key idea is how security deposits are kept and managed. A security deposit is money the tenant provides to the landlord to cover potential damages, not money the tenant borrows or repays. The phrase “Interest Bearing Account (30 Days)” describes placing that deposit into an account that earns interest, rather than leaving it as idle cash. The “30 Days” part usually signals the required timeframe to move the deposit into that interest-earning account after receipt, ensuring the funds aren’t tied up as simple cash and that they earn interest as required by policy or law.

So this choice best matches the standard practice: the deposit is held, not loaned to the tenant, and it’s kept in an account that accrues interest. The other options don’t fit because they imply the tenant is owed a loan, or they describe non-interest-bearing or just cash reserves rather than an interest-earning holding arrangement.