Money market fund rates do not closely track short-term market interest rates, because the maturities of assets held in money market portfolios generally range from one to six months.

Question

Quizplus · Accepted Answer

Because the maturities of assets held in money market portfolios generally range from 20 to 50 days, the yields of these funds closely track short-term market interest rates.

Money Market Fund Rates Do Not Closely Track Short-Term Market