Money-Market Mutual Funds (MMMFs)provide an Alternative to Traditional Liquid Investments

question 116

Multiple Choice

Money-market mutual funds (MMMFs) provide an alternative to traditional liquid investments offered by financial institutions.What are/is the advantage(s) of an MMMF?

• A)High interest rates
• B)Check-writing privileges
• C)Minimal risk
• D)Convenience-deposits made through payroll deductions
• E)All of the above are correct.

---

Definitions:

Voucher System

A set of procedures for authorizing and recording liabilities and cash payments.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.

Cash Payments

Transactions in which payment for goods or services is made with cash at the time of purchase.

Voucher

A special form for recording relevant data about a liability and the details of its payment.