Question

Which of the following investments would be the most appropriate for an investor in a low tax bracket who indicates that protection from inflation is their primary investment objective? (A) GNMA's (B) Tax-exempt unit trusts (C) Money market funds (D) Treasury bonds

Answer 1

Answer:

(C) Money market funds

Explanation:

Money market fund -

It is a type of mutual funds , where the investments are done in case of high liquid instruments like the cash , or something equivalent to cash .

For a time period of less than 13 months .

In return , the funds give higher liquid with very low risk .

hence , the correct answer is  (C) Money market funds .