Question

The GASB requires certain note disclosures regarding cash deposits. Under what circumstances are a government's deposits with financial institutions considered to be exposed to custodial credit risk

Answer 1

When more than 85% of the deposits are with a single institution

Step-by-step explanation:

When more than 85% of the deposits are with a single institution, the government's deposits with the financial institutions considered to be exposed to custodial credit risk.