Money market funds are normally perceived to have ____ interest rate risk, and ____ default risk.

Question

Quizplus · Accepted Answer

Money market funds are designed to be low-risk investments, so they tend to have low interest rate risk and low default risk. This is because they invest in short-term, highly liquid securities such as government bonds and commercial paper, which are typically low-risk. Therefore, option D is the best choice.

Money Market Funds Are Normally Perceived to Have ____ Interest