Custodial funds are used only if a government holds resources in a custodial capacity for others.

Question

Quizplus · Accepted Answer

Custodial funds are specifically used by governments to manage resources that they hold in trust for others, such as funds held in trust for a specific program or the assets of a pension plan. Therefore, custodial funds are only used in situations where the government is acting as a trustee or custodian for someone else's resources.

Custodial Funds Are Used Only If a Government Holds Resources