Money market mutual funds provide attractive competition for bank deposits because

Question

Quizplus · Accepted Answer

Money market mutual funds typically invest in short-term, low-risk securities such as Treasury bills and commercial paper, making them a relatively safe investment option. Their returns are generally higher than traditional bank deposits, making them an attractive alternative. While they are not FDIC insured like bank deposits, they are often considered a low-risk investment. Additionally, they are convenient to purchase and use, making them a competitive option for bank deposits.

Money Market Mutual Funds Provide Attractive Competition for Bank Deposits