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A ______ account is an account in which money is deposited by one person for the ________ of another. The money is devoted to a particular purpose and _______ be diverted for other purposes.

A. Joint; Benefit; cannot
B. Trust; Purpose; can
C. Shared; Use; should
D. Reserved; Goal; must

User Theduke
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1 Answer

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Final answer:

A trust account is used to hold money by one person for the benefit and purpose of another, with restrictions on its use.

Step-by-step explanation:

A trust account is an account in which money is deposited by one person for the purpose of another. The money is devoted to a particular purpose and cannot be diverted for other purposes. The correct answer is B. Trust; Purpose; cannot.

Trust accounts are a financial arrangement where funds are held by a third party (the trustee) for the benefit of another party (the beneficiary), which are to be used in a manner specified by the trust agreement. This is different from checking accounts, which are demand deposits that a bank must return to the account holder on demand, allowing for immediate access and use for buying things, but without such restrictions on their use.

User David Specht
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