Which of the following are characteristics of a money market mutual fund?

A money market fund is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. Though not quite as safe as cash, money market funds are considered extremely low-risk on the investment spectrum.

What are the characteristics of a money market fund?

A money market fund is a type of fixed income mutual fund with very stringent maturity, credit quality, diversification, and liquidity requirements intended to help it achieve its goals of principal preservation and daily access for investors.

What are 3 characteristics of mutual funds?

Fortunately, there are certain characteristics that the best-performing funds seem to share.
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  • Low Fees or Expenses. …
  • Consistently Good Performance. …
  • Sticking to a Solid Strategy. …
  • Trustworthy, With Solid Reputations. …
  • Plenty of Assets, but Not Too Much Money.

What are the main characteristics of money market securities quizlet?

Match
  • Maturity of one year or less.
  • High degree of liquidity (Over the counter)
  • Low expected return.
  • Low degree of risk.
  • Clustered Returns across different types.
  • Secondary market is OTC.

What is a money market mutual fund quizlet?

Money market mutual funds. An investment whose objective is to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share. The portfolio is comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.

Which is true of money market mutual funds?

A money market mutual fund is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. Though not exactly as safe as cash, money market funds are considered extremely low risk on the investment spectrum and thus carry close to the risk-free rate of return.

What are two characteristics of money market accounts quizlet?

What are the characteristics of money market instruments? (a) low default risk; (b) short-term maturity; and (c) high marketability.

Which of the following is not a characteristic of money market?

Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.

Which of the following characteristics describe money market securities?

Money market securities have three basic characteristics in common: They are usually sold in large denominations. They have low default risk. They mature in one year or less from their original issue date.

What are the 5 characteristics of a bond?

Characteristics of bonds
  • Face value. Corporate bonds normally have a par value of $1,000, but this amount can be much greater for government bonds.
  • Interest. …
  • Coupon or interest rate. …
  • Maturity. …
  • Issuers. …
  • Rating agencies. …
  • Tools and tips.

Which of the following is not a characteristic of money market?

Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.

What is a money market fund and how does it work?

A money market fund is a mutual fund that invests solely in cash and cash equivalent securities, which are also called money market instruments. These vehicles are very liquid short-term investments with high credit quality. Money market funds generally invest in such instruments as: Certificates of deposit (CDs)

What are the advantages of a money market?

While there are several reasons to save with a money market account, the main advantage is the account’s higher interest rate. Other benefits of opening a money market account include: Easy access to your money: Unlike certificates of deposit (CDs), you can access your money market savings several times a month.

What are two characteristics of money market accounts quizlet?

What are the characteristics of money market instruments? (a) low default risk; (b) short-term maturity; and (c) high marketability.