Final answer:
Trust Institution Policies should exclude an Investment Policy, as it is a separate guideline for managing investments rather than a component of the institution's operational or risk management policies.
Step-by-step explanation:
The question posed pertains to Trust Institution Policies, specifically elements that should not be included in these policies. Trust Institution Policies generally encompass guidelines for managing risks and how trust institutions should operate. In the context of this question, the policies should include interest rate risk, guidelines for account administration, and policy exception reporting and approval guidelines. These components are essential for the smooth operation and risk management of financial institutions.
However, an Investment Policy is not necessarily part of Trust Institution Policies but rather a separate set of guidelines that an institution may provide for clients. An Investment Policy deals with the strategies and objectives concerning how an entity manages its investments, which could include guidelines for securities selection, asset allocation, and risk tolerance, but is separate from the internal policies and procedures of trust management.
Considering the options provided, Investment Policy is the correct answer that should not be included in Trust Institution Policies. Trust institutions play a critical role in the economy by helping individuals save money through various accounts and determining how to allocate savings effectively, all of which involve a consideration of risks including interest rate risk.