A money market mutual funds include tax-exempt funds and government securities funds.

Question

Quizplus · Accepted Answer

Money market mutual funds do include tax-exempt funds and government securities funds among their investment options. These funds invest in short-term, low-risk securities like Treasury bills, certificates of deposit, and commercial paper. Tax-exempt funds invest in municipal securities issued by state and local governments, which are exempt from federal income tax. Government securities funds invest in securities issued by the U.S. government, such as Treasury bills and notes. Both types of funds are considered relatively safe investments with low volatility and are therefore popular with conservative investors.

A Money Market Mutual Funds Include Tax-Exempt Funds and Government