Final answer:
An example of a permanent fund would be a cemetery perpetual care fund, where the principal is invested and only the income is used for ongoing maintenance. Option b, a gift meant to benefit retired firefighters permanently, also qualifies as a permanent fund. However, a pension trust fund is not a permanent fund since it is assigned to provide benefits to retirees which may include depleting the principal over time.
Step-by-step explanation:
An example of a permanent fund would be a cemetery perpetual care fund. A permanent fund is a type of fiduciary fund used by government entities to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that benefit the public.
The income generated from the permanent fund can be used to maintain and care for the cemetery indefinitely, which embodies the concept of a permanent fund where the principal amount is kept intact while the returns or interest is used.
Option b, a gift given to be invested permanently with the proceeds to benefit retired firefighters, is also an example of a permanent fund. It is designed to benefit a specific community indefinitely by using the returns from the investment while preserving the principal amount.
However, option c, a pension trust fund, is not an example of a permanent fund. Pension trust funds are used to account for resources that are required to be held in trust for the members and beneficiaries of defined benefit plans or defined contribution plans. Unlike permanent funds, pension trust funds are intended to be drawn down over time to provide benefits to retirees.