Which of the following is NOT correct about money market funds (MMFs)?
A)The credit risk of MMFs is normally perceived to be lower than that of corporate bond funds.
B)MMFs have higher interest rate risk than long-term bond funds.
C)MMFs are normally characterized as having relatively low risk and low expected returns.
D)All of these are correct.

Question

Quizplus · Accepted Answer

Money market funds (MMFs) are designed to have low interest rate risk, especially when compared to long-term bond funds. MMFs invest in short-term debt securities, which are less sensitive to interest rate changes than the long-term bonds.

Which of the Following Is NOT Correct About Money Market