Which of the Following Is the Most Reliable Means of Distinguishing

question 14

Multiple Choice

Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?

• A) Examine the applicable documents and contact the GASB for a determination letter.
• B) Examine the aggregate of factors, such as the enactment that brought the relationship into existence and regulations under which it operates.
• C) Examine the length of time assets will be held; agency relationships are generally in existence longer than trust relationships.
• D) Examine the wording of any agreements to determine if the word "trust" or "agency" is used.

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Definitions:

Real GDP

A measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced in a given year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar terms to remove the effect of inflation.

Per Capita Real GDP

An economic measure that divides the real gross domestic product by the total population, indicating the average economic output per person, adjusted for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.