Characteristics of a Money Market Mutual Fund Include

question 86

Multiple Choice

Characteristics of a money market mutual fund include

• A) the purchase of shares by investors, the proceeds of which are reinvested into liquid short-term securities.
• B) a required minimum balance of $2,500.
• C) the ability to be readily marketable.
• D) none of the other answers are correct

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Definitions:

APC

In economics, stands for Average Propensity to Consume, which is the ratio of total consumption to total disposable income.

APC

Average Propensity to Consume, which is the fraction of income that households spend on consumption as opposed to saving.

APS

Stands for Average Propensity to Save, which measures the proportion of income that households save rather than spend on goods and services.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.