What do we call funds placed into a financial institution for safekeeping?

Prepare for the Unit Investment Trust Funds Exam with our comprehensive questions and answers. Study with multiple-choice questions and detailed explanations to ensure success!

The term used for funds placed into a financial institution for safekeeping is "deposits." When individuals or entities deposit money into a bank or a financial institution, they are effectively entrusting the institution with their funds for various purposes including storage, interest accrual, or future transactions. Deposits are generally insured by governmental entities up to a certain limit, providing a level of safety for the depositors.

Other options, while related to financial transactions, do not specifically denote the act of placing funds into a financial institution for safekeeping. Investment funds involve pooling resources to invest in various financial instruments, trust accounts are used to manage assets on behalf of beneficiaries, and escrow funds refer to money held by a third party until certain conditions are fulfilled in a transaction. Each of these terms describes different scenarios in finance, thereby making "deposits" the most appropriate term for the given question.

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