The Net Asset Value of a Money Market Mutual Fund

question 110

Multiple Choice

The net asset value of a money market mutual fund:

• A)is dependent upon the value of the fund's assets.
• B)is guaranteed to be $1 a share.
• C)fluctuates as new shares are issued and old shares are redeemed.
• D)varies inversely with market interest rates.
• E)is insured by the sponsoring investment advisory firm.

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Definitions:

Measure of Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.

Statistic

A numerical value that summarizes or describes an aspect of a sample.

Parameter

A measurable characteristic that describes an aspect of a population in statistical analysis.