A Major Reason for the Development of Money Market Mutual

question 15

Multiple Choice

A major reason for the development of money market mutual funds in the 1970s was that:

• A)open-market operations were suspended.
• B)bank deposit rates were capped at levels below market interest rates.
• C)money market funds offered more flexible checking privileges than banks.
• D)they were considered to be safer than banks.
• E)money markets did not exist until 1970.

---

Definitions:

Perpetual Inventory System

An inventory system that continuously tracks inventory levels and updates them after every purchase or sale, providing a real-time view of inventory.