Alberta General Insurance Level 1 Practice Exam

Question: 1 / 400

What is the purpose of a trust account?

To manage investments for a business

To hold funds for day-to-day operations

To manage an individual's personal savings

To manage funds for the benefit of another

A trust account is specifically designed to manage funds for the benefit of another person or entity. This means that the account is not used for investments for a business, holding funds for day-to-day operations, or managing an individual's personal savings. The purpose of a trust account is to ensure that the designated beneficiary receives the funds and benefits from them accordingly, rather than the funds being used for any other purpose.

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