Choice "A" is correct. The fact pattern describes a transaction in which Harland County is collecting and holding cash temporarily on behalf of the cities within its borders. Transactions of this type are handled in agency funds.Choice "b" is incorrect. The general fund accounts for most of the general governmental activities of a governmental unit and is the default classification for transactions not otherwise appropriately handled in some other fund. The grant is clearly best handled in an agency fund, thus the general fund is not appropriate.Choice "d" is incorrect. Although grants are frequently accounted for in special revenue funds, the use of a special revenue fund anticipates the County would have responsibility for grant compliance. This cash conduit arrangement is best suited for an agency fund since the money is purely a passthrough arrangement.Choice "c" is incorrect. The private-purpose fund would account for trust arrangements that are not better met by other fiduciary fund types. The agency fund is preferable given the pure conduit arrangement described by the fact pattern.