If a fiduciary, rather than a governmental fund, indicate the type of fund. Briefly justify your response.

1. A government holds the assets that its employees contribute to a defined contribution plan. It maintains the assets in separate trust funds for each employee and each employee can select among several mutual funds in which to invest the assets.
2. A high school requires its athletic booster association to deposit with the school any cash it may have collected from members or earned through its activities. The school does not monitor or control how the association spends its resources. Upon request of the association, the school writes a check either to the association itself or to a party designated by the association. Essentially, the school serves merely as the association's banker.
3. A high school requires its athletic booster association to deposit with the school any cash it may have collected from members or earned through its activities. All expenditures of the association must be approved by the school's athletic director to ensure that they conform to school policies.

Answer rating: 100% (QA)

A pension plan is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a workers future benefit The pool ... View the full answer