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:

Average Speed

The total distance traveled divided by the total time taken, reflecting a constant rate of movement over a specific interval.

Constant of Proportionality

A constant ratio or factor that relates two variables in a proportional relationship, often represented by k in the formula y = kx.

Square Root

A value that, when multiplied by itself, gives the original number.

Directly Proportional

The relationship between two variables where if one variable increases, the other variable increases by the same factor.