Which of the Following Terms Is Used to Indicate That

question 62

Multiple Choice

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?

• A) Board-designated net assets.
• B) Permanently restricted net assets.
• C) Endowment assets.
• D) Temporarily restricted net assets.

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Definitions:

Banking Crisis

A situation in which a large part of the banking sector becomes insolvent, leading to a loss of confidence and potentially a run on banks.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions to maintain public confidence and encourage stability in the financial system.

Mergers and Acquisitions

Financial transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated.

Deposit Insurance

A protection scheme that guarantees a depositor's money in the event of a bank failure, up to a certain limit.