Money market mutual funds:
Click on the arrows to vote for the correct answer
A. B. C. D.A
A. Enable individuals and small businesses to invest indirectly in money-market instruments
This answer is correct. Money market mutual funds are investment vehicles that pool money from individual and institutional investors to invest in short-term, low-risk debt securities such as Treasury bills, commercial paper, and certificates of deposit. They are a type of mutual fund that allows individuals and small businesses to gain exposure to the money market, which is the market for short-term borrowing and lending.
B. Are available only to high net-worth individuals
This answer is incorrect. Money market mutual funds are available to a wide range of investors, including individuals, small businesses, and institutional investors. They do not require a high net worth to invest in.
C. Are involved in acquiring and placing mortgages
This answer is incorrect. Money market mutual funds do not typically invest in mortgages or other long-term securities. They focus on short-term, low-risk debt instruments.
D. Are also known as finance companies
This answer is incorrect. Money market mutual funds are not the same as finance companies. Finance companies are typically specialized lenders that provide loans to consumers and businesses. Money market mutual funds, on the other hand, invest in short-term debt securities.