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

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Sarah has invested in a money market mutual fund, as it pools together funds from multiple investors to purchase highly liquid, low-risk securities such as U.S. treasury bills. The other options (savings bank, savings and loan association, credit union) typically offer savings accounts and loans, but do not pool funds to invest in securities.

Sarah Buys Shares from a Financial Institution That Uses Her