Characteristics of a money market mutual fund include
A) the purchase of shares by investors, the proceeds of which are reinvested into liquid short-term securities.
B) a required minimum balance of $2,500.
C) the ability to be readily marketable.
D) None of the options are true.

Question

Quizplus · Accepted Answer

Money market mutual funds are investment vehicles that allow investors to purchase shares, which are then invested into a portfolio of short-term, low-risk securities such as government bonds, certificates of deposit, and commercial paper. These securities are highly liquid, meaning they can be easily bought and sold on the open market. Additionally, there is typically no required minimum balance for investing in a money market mutual fund, though some funds may have their own minimum investment requirements.

Characteristics of a Money Market Mutual Fund Include