________________ pools the funds f many small investors to purchase high return, short term marketable securities offered by the U. S treasury.
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A. B. C. D.B
The correct answer to the question is B. Money market mutual funds.
Money market mutual funds are a type of investment vehicle that pools funds from many small investors to purchase high-return, short-term marketable securities, such as U.S. Treasury bills, certificates of deposit, and commercial paper. These securities are considered safe investments and are typically issued by the U.S. government, banks, or corporations with high credit ratings.
Investors in money market mutual funds earn returns on their investments through interest paid on the underlying securities. The funds themselves are managed by professional portfolio managers who work to maximize returns while minimizing risk.
Money market mutual funds are often used as a short-term cash management tool for individual and institutional investors. They offer easy access to cash and can be used to fund short-term needs or emergencies. Additionally, because they invest in high-quality, short-term securities, money market mutual funds are considered to be low-risk investments.
Money market deposit accounts (answer A) are a type of deposit account offered by banks and credit unions that typically pay higher interest rates than traditional savings accounts. Time deposits (answer C), also known as certificates of deposit (CDs), are savings products that require customers to deposit funds for a specified period of time in exchange for a higher interest rate. Asset management accounts (answer D) are investment accounts that allow investors to pool their assets and receive professional investment advice and management. While these products may offer some benefits to investors, they are not specifically designed to pool funds to purchase short-term marketable securities like money market mutual funds.