A fiduciary system
A) Characterizes the financial system in the United States and elsewhere
B) Is a system based on trust
C) Is used for making payments
D) Both a and b

Question

Quizplus · Accepted Answer

In the context of the financial system, a fiduciary system can characterize the relationship between financial advisors and their clients, trustees and beneficiaries, or corporate directors and shareholders. These relationships are built on the expectation that the fiduciary will act in the best interest of the other party, rather than for personal gain.
Therefore, the correct answer to the input question is:
b) Is a system based on trust
While the fiduciary system does characterize aspects of the financial system in the United States and elsewhere, the term "fiduciary system" itself specifically refers to the trust-based nature of certain relationships, rather than the financial system as a whole. It is not used for making payments, which is a function of the monetary system. Hence, option d) Both a and b is not accurate in this context.

A Fiduciary System