Final answer:
Statement a is likely correct as trust institutions typically review and approve their fee structures periodically. Statement b is incorrect as geographic location can affect the level of competition for trust and asset management services.
Step-by-step explanation:
Assessing the statements given about trust institutions, the correctness of each can be evaluated based on general business practices and industry standards for financial institutions:
a. A trust institution's fee structure is typically reviewed and approved periodically by the trust committee, or some other senior operating committee. This statement is likely correct as it represents standard practice for ensuring that fee structures remain competitive and appropriate.
b. Geographic location can influence the level of competition for trust and asset management services because local markets often differ in terms of client demographics and competition density. Therefore, this statement seems to be incorrect as geographic location can indeed dictate competition levels.
c. It is incorrect that many institutions do not recognize settlements, surcharges, and losses as components of trust institution profitability. Institutions are generally required to acknowledge all income and expenses, including any settlements, surcharges, and losses, to correctly report their financial health and profitability.