Which of the Following Statements Is Incorrect

question 52

Multiple Choice

Which of the following statements is incorrect?

• A)Commercial paper is the largest component in money market funds.
• B)From an investor's perspective, money market funds usually have a low level of credit risk.
• C)If managers are unable to change the asset composition of money market funds, they can still influence performance by changing the maturities of the securities in which they invest.
• D)If mutual fund managers expect interest rates to decrease in the future, they should use funds generated from maturing securities to purchase new securities with shorter maturities.

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Definitions:

American Children

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Welfare Rolls

A list or record of individuals and families who receive assistance from government welfare programs.

Expanded Sharply

Refers to rapid and significant growth or increase in a particular area, such as business, economy, or a specific sector.

Non-Cash Benefits

Forms of compensation provided to employees or beneficiaries that are not paid out in cash, such as health insurance, pension contributions, and food assistance.