Sarah buys shares from a financial institution that uses her funds together with other funds to purchase U.S. treasury bills. Sarah has deposited her money into a ____________.

Question

Quizplus · Accepted Answer

Sarah's investment aligns with what a money market mutual fund does, which pools together funds from multiple investors to purchase short-term, low-risk investments such as U.S. treasury bills. Savings and loan associations, credit unions, and savings banks are all financial institutions that offer deposit accounts and loans, but they do not necessarily specialize in investing in U.S. treasury bills.

Sarah Buys Shares from a Financial Institution That Uses Her