True or False: A government can use an agency fund for amounts allocated to individual funds.

A government can indeed use an agency fund for amounts allocated to individual funds, which makes the statement true. Agency funds are used to account for resources that the government holds on behalf of an individual or another government unit. These funds do not belong to the government, but rather to the entities that they represent, which means the government acts merely as an agent.

Because agency funds are utilized for resources that need to be held or transmitted, they can be used to channel funds allocated to individual funds for specific purposes. This is common in situations where the government collects money to be allocated to various programs or entities, effectively managing the flow of funds without retaining ownership or control of the resources.

In contrast, some of the other responses might introduce constraints, such as limits or dependence on state law, which would not universally apply to all government agency funds. The fundamental nature of agency funds allows for this specific use, justifying the statement as true.