Amber is interested in investing her money in a mutual fund that invests in short-term debt securities issued by governments and large corporations. She also wants to be able to write checks and reinvest interest income from her investments. Which institution would Amber most likely choose for her investments

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Question Completion:

Options to choose from:

a brokerage firm

a money market bank account

a money market fund

an insurance company

a pension fund

Answer:

Amber will likely choose for her investments:

a money market fund

Explanation:

For example, Amber can invest in the Vanguard Treasury Money Market or the Fidelity Money Market.  These are money market funds or mutual funds that invest in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).

Amber should choose for her investment is a money market fund.

The information regarding the money market fund is as follows:

  • It should be invested in highly liquid.
  • It involved the cash, cash equivalent having short-term maturity period.
  • It is like the mutual funds that are issued by the government and the large corporations.

Therefore we can conclude that Amber should choose for her investment is a money market fund.

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