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 other answers are correct

Question

Quizplus · Accepted Answer

Money market mutual funds are investment vehicles that purchase short-term debt securities with maturities ranging from overnight to one year. Investors purchase shares in the fund, and the proceeds are invested in these securities. These funds aim to maintain a stable net asset value (NAV) of $1 per share. Money market mutual funds are highly liquid and can be easily bought and sold, making them a popular choice for investors who want low-risk investments that provide liquidity and stability. Minimum balance requirements vary by fund and can range from $1 to $25,000, but $2,500 is not a standard requirement.

Characteristics of a Money Market Mutual Fund Include