Which of the following are characteristics of money market investments?
A) Money market funds are offered by banks.
B) Money market funds are insured up to $100,000 by federal agencies.
C) The minimum balance for money market deposit accounts is $5,000.
D) None of these

Question

Quizplus · Accepted Answer

None of the given options are correct for describing money market investments. Money market investments are short-term, low-risk securities such as Treasury bills, certificates of deposit, and commercial paper that are typically used for cash management or as a temporary home for funds before investing them elsewhere. Money market funds are not offered by banks, they are typically managed by mutual fund companies. They are not insured by federal agencies like FDIC, instead, they seek to maintain a stable net asset value of $1 per share. The minimum balance for money market deposit accounts varies by institution, but it is generally lower than $5,000.

Which of the Following Are Characteristics of Money Market Investments