Question

An account separate from a broker's own funds, one in which the broker is required by law to deposit all funds collected for clients.

A. Trust account
B. Escrow account
C. Brokerage account
D. Savings account

Answer 1

A trust account is a separate account that brokers are required by law to deposit all funds collected for clients. It provides protection and ensures that client funds are not mixed with a broker's own funds.

Step-by-step explanation:

The account described in the question is referred to as a trust account. A trust account is a separate account that is required by law for brokers to deposit all funds collected for clients. It provides protection and ensures that client funds are not mixed with a broker's own funds. Brokers are legally obligated to handle these funds responsibly and only use them for the benefit of their clients.