Which of the following raises money by selling shares to large numbers of investors and then pools those funds to purchase shortterm, liquid securities?
A) Trade credit
B) Money market mutual fund
C) Treasury bill
D) Revolving credit agreement

Question

Which of the following raises money by selling shares to large numbers of investors and then pools those funds to purchase short­term, liquid securities?
A) Trade credit
B) Money market mutual fund
C) Treasury bill
D) Revolving credit agreement

Quizplus · Accepted Answer

A money market mutual fund raises money by selling shares to a large number of investors and then pools those funds to purchase short-term, liquid securities. This allows investors to earn a competitive rate of return while maintaining liquidity and low risk. Trade credit refers to the credit extended by a supplier to a buyer for the purchase of goods or services. Treasury bills are short-term government securities that are sold to finance the national debt and other expenses. Revolving credit agreements are lines of credit that allow borrowers to draw funds up to a certain limit and repay them over time.

Which of the Following Raises Money by Selling Shares to Large