Which of the following is not a trust arrangement?
A) A corporation transferring the title to fixed assets to a trustee for bondholders as security for the payment of the bonds.
B) A mother transferring assets to provide for her infant should she pass away.
C) Your broker requiring sufficient funds in your account to cover a deficit.
D) Property of a bankrupt being transferred to a trustee.
E) Parents setting up a fund for the education of their children.

Question

Quizplus · Accepted Answer

Option C is not a trust arrangement. It is a standard requirement for brokers to hold sufficient funds in a client's account to cover any potential deficits caused by trading losses. Trust arrangements involve transferring assets to a trustee to hold for the benefit of another party, such as in options A, B, D, and E.

Which of the Following Is Not a Trust Arrangement