The GASB Requires Certain Note Disclosures Regarding Cash Deposits

Multiple Choice

The GASB requires certain note disclosures regarding cash deposits. Under what circumstances are a government's deposits with financial institutions considered to be exposed to custodial credit risk?

A) More than 85% of the deposits are with a single institution
B) The deposits are not collateralized
C) The deposits are not insured
D) The deposits are not insured and the deposits are either not collateralized, collateralized with securities held by the financial institution, or collateralized with securities held by the institution's trust department or agent, but not in the government's name