Question

Which of the following statements is NOT true about money market mutuals funds offered by investment firms?A. They tend to make pay rates that are higher than those paid by banks by similar accounts B. The money in the account is that safe as you’re safe for the money held in a bankC. Many have large minimum balances open and/or maintain an accountD. Interest rates may change frequently to reflect what the fun earned in its investments

Answer 1

Solution

A money market mutual is a mutual fund that invests in highly liquid and near-term instruments such as cash, high credit rating, and debt-based securities with short-term maturity.

Money market mutual funds are similar or are cash equivalent even if not as safe as cash, they tend to provide lower risk on the investment spectrum.

Hence, from the above explanation, the most correct option is: Option A