In September 2008,the Reserve Primary Fund,a Money Market Mutual Fund,found

question 70

Multiple Choice

In September 2008,the Reserve Primary Fund,a money market mutual fund,found itself in the situation know as "breaking the buck." This means that

• A)they could no longer afford to redeem shares at the par value of $1.
• B)they required shareholders to contribute a dollar more in fees each month.
• C)shareholders were able to redeem shares for more than a $1.
• D)shares earned more than a dollar in interest.

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Definitions:

Critical Values

These are threshold points on the scale of the test statistic that delineate the region where the null hypothesis is rejected, essential in determining the significance of the test outcome.

Alpha

The significance level, a threshold used in hypothesis testing indicating the probability of rejecting the null hypothesis when it is true.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a statistical calculation.

Sample Size

The number of observations or data points that make up a sample.