Question

2) In order to place trust monies in an interest-bearing account: I. The broker must have written permission from the client II. The written permission must stipulate who is to receive a portion of the interest

A) I only
B) II only
C) Both I and II
D) Neither I nor II

Answer 1

In order to place trust monies in an interest-bearing account, the broker must have written permission from the client and the permission must stipulate who is to receive a portion of the interest.

Step-by-step explanation:

An interest-bearing account is a financial account that pays interest on the balance maintained in the account over time. These accounts are offered by financial institutions such as banks, credit unions, and other deposit-taking entities. The interest earned on the account is a form of compensation provided to the account holder for keeping their money in the account.

According to the question, in order to place trust monies in an interest-bearing account, both I and II are required:

1. The broker must have written permission from the client: This ensures that the broker has the authority to place the funds in an interest-bearing account.
2. The written permission must stipulate who is to receive a portion of the interest: This specifies who will benefit from the interest earned on the trust monies.