Final answer:
A fiduciary account is an account managed by one party for the benefit of another in a banking institution authorized to do business in the state.
Step-by-step explanation:
An account managed by one party for the benefit of another in a banking institution authorized to do business in the state is known as a fiduciary account.
It is a type of account where the bank holds and manages funds on behalf of a client, also known as the beneficiary, while acting as a fiduciary. The bank has a legal obligation to act in the best interest of the beneficiary and handle the funds responsibly.