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.

---

Definitions:

Wealth

An abundance of valuable resources or valuable material possessions, often measured in terms of assets like money, real estate, and personal property.

Bank Holding Company

A corporation that owns banks.

Private Banks

Financial institutions that are owned by private individuals or corporations instead of being owned by the government, offering banking services to individuals and businesses.

Depositors

Individuals or entities that hold accounts with banks or financial institutions, entrusting their funds for safekeeping and earning interest.