Final answer:
In summary, banks are required by the FDIC to insure deposits up to $250,000 per account, but there is no specific amount mandated that must be kept in a trust account. This insurance ensures depositor funds are secured in case of a bank's failure. Reserve requirements for banks were set to 0% as of March 2020.
Step-by-step explanation:
The question regarding the amount that must be kept in a trust account relates primarily to the concept of deposit insurance. According to the Federal Deposit Insurance Corporation (FDIC), banks are required to insure deposits up to $250,000, which is a standard that has been in place since it was raised from $100,000 in 2008. This means that any individual account at a bank is insured for up to $250,000, providing security to depositors in the event of a bank's failure. Furthermore, the reserve requirement that banks were traditionally held to, which mandated a certain percentage of deposits be held in reserve, was eliminated in March 2020, reducing it from the prior percentages of 3% and 10% to effectively 0%. As such, banks are no longer required by the Federal Reserve to hold a specific portion of deposits in reserve. However, it's important to note that the information provided does not specify an exact amount that must be kept in a trust account, but rather outlines the insurance coverage for deposits.
In relation to trust accounts, the requirement would depend on the policies of the trust account, the institution holding it, and the regulations that apply to that specific type of account. Generally speaking, there's no specified amount over which deposits must be kept in trust; rather, it is about ensuring that the funds within the trust are managed according to the trust agreement and applicable laws.