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Which of the following statements about money market mutual funds is true?
A) They invest in commercial paper, CDs, and repurchase agreements.
B) They usually offer check-writing privileges.
C) They are highly leveraged and risky.
D) They invest in commercial paper, CDs, and repurchase agreements, and they usually offer check-writing privileges.
E) All of the options are true.
Money Market Mutual Funds
Mutual funds that invest in short-term, high-quality debt securities and are designed to offer investors liquidity and a safe place to invest in the short term.
Commercial Paper
Short-term unsecured debt issued by large corporations.
CDs
Certificates of Deposit, a type of time deposit at banks and financial institutions offering a fixed interest rate over a fixed period.
- Acquire knowledge on the elementary composition and categories of investment vehicles, encompassing mutual funds, closed-end funds, and REITs.
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Learning Objectives
- Acquire knowledge on the elementary composition and categories of investment vehicles, encompassing mutual funds, closed-end funds, and REITs.
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