Which of the following is an example of a trust fund activity?

Managing pension benefits is an excellent example of a trust fund activity because it involves handling financial resources designated for specific future obligations, such as the payment of retirement benefits to employees. Trust funds are established to ensure that funds are used exclusively for their intended purpose, which aligns perfectly with how pension funds operate.

Pension funds are collected from employee contributions and employer matching contributions and are required to be managed prudently to ensure that there are sufficient assets available to meet future payouts. This reflects the principles of trust fund management, which focuses on accountability and the safeguarding of funds for beneficiaries.

In contrast, activities such as providing public transportation services, issuing government bonds, or collecting property taxes do not fall under the specific framework of trust fund activities, as these either relate to operational services, financing mechanisms, or revenue generation without the same fiduciary responsibility or focus on specific future benefits.