Which of the Following Statements Best Describes a Money Market

question 94

Multiple Choice

Which of the following statements best describes a money market mutual fund?

• A) It pools funds from many investors and uses these funds to purchase very safe, highly liquid securities.
• B) It is a short-term marketable IOU issued by the U.S. federal government.
• C) It is the part of a firm's net income it reinvests.
• D) It is a financial agreement between a firm and a bank in which the bank pre-approves credit up to a specified limit.

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Definitions:

Detailing Costs

The process of breaking down and itemizing the expenses associated with a project, product, or service.

Business Document

A formal written record that is used for business purposes, such as contracts, reports, memos, or proposals.

Psychological Weight

The perceived importance or emotional impact of a thought, decision, or object on an individual’s mind.

Yardstick Reports

Comparative reports that measure the performance of an organization against a standard or benchmark.