Which of the Following Is a Drawback of a Money

question 48

Multiple Choice

Which of the following is a drawback of a money market fund from an investment company?

• A)Penalty if money is withdrawn early
• B)Lower rate of interest if redeemed within the first five years
• C)Minimum required holding period
• D)Not covered by FDIC insurance
• E)Taxed at a higher rate than other investments

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Definitions:

Business-Related Activity

Actions, conducts, or operations that are directly associated with the running and management of a business or commercial enterprise.

Administrative Body

An organization with authoritative or regulatory functions within a governmental or institutional framework.

Arbitrarily

Acting based on random choice or personal whim, rather than any reason or system.

Licence To Practise

A formal permission granted to an individual or organization to engage in a profession or activity that is regulated by law.