Money Market Mutual Funds

question 70

Multiple Choice

Money market mutual funds

• A)allow check writing.
• B)are not federally insured.
• C)pool the funds of many small investors.
• D)pay interest rates of 1 to 3 percent higher than those paid on regular savings accounts.
• E)all of these.

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Definitions:

Savings

The portion of income not spent on current consumption or taxes, instead set aside for future use or investment.

Disposable Income

The money households have for spending and saving after subtracting income taxes.

Disposable Income

The amount of income left for spending or saving after taxes have been paid.

C + I

Represents the sum of consumer spending (C) and investment spending (I) in an economy's GDP formula.