Which statement describes the responsibility of a broker who receives an earnest money deposit?

The correct response highlights an essential duty of a broker when handling earnest money deposits in real estate transactions. When a broker receives an earnest money deposit, it is their responsibility to act as a fiduciary, which includes safeguarding these funds on behalf of their clients. Immediately placing the deposit into an escrow account ensures that the money is held securely and is not misused. This escrow arrangement protects all parties involved in the transaction, ensuring that the funds are available for legitimate transaction-related expenses at the time of closing.

In contrast, the other options suggest actions that would violate fiduciary responsibilities. Using the funds for personal use, investing them until closing, or using them for business expenses would all constitute inappropriate handling of the deposit, potentially leading to legal repercussions for the broker. Legal and ethical standards require that earnest money deposits are treated with the highest level of integrity, emphasizing the importance of proper escrow procedures in real estate transactions.