1) The City of Monroe received a $100,000 donation. The trust agreement requires the city to maintain the principal. The principal may be invested, and any interest earned must be used to purchase library books. The donation will be recorded in a(n):

Select one:

a. Permanent Fund

b. Private Purpose Trust Fund

c. Custodial Fund

d. Investment Trust Fund

2) The City of Van Buren accumulates employees' salary withholdings in a separate fund before distribution to the pension trust fund, federal government, and state taxing authorities. This will be accounted for in a(n):

Select one:

a. Private Purpose Trust Fund

b. Custodial Fund

c. General Fund

d. Investment Trust Fund

3) The transactions of a trust fund must follow:

Select one:

a. Applicable state and local laws

b. Provisions of the trust agreement

c. Both a and b

d. None of the above