Question

.Money market mutual funds invest in a. federal government Treasury bills. b. corporate bonds. c. federal...

.Money market mutual funds invest in

a.

federal government Treasury bills.

b.

corporate bonds.

c.

federal government Treasury bonds.

d.

corporate stock.
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Answer #1

Money Market muytual fund will always be investing into such securities which will having a shorter life and shorter maturity period so only securities which will be measuring in lesser than a year would be subjected to be invested by these money market mutual funds.

Treasury bills are generally issued for lesser than one year whereas, treasury bonds are generally issued for more than 10 years so treasury bills would be the appropriate security in which the money market mutual fund will invest into.

Money market mutual funds will not be investing into corporate bonds or corporate stocks.

Correct answer would be option ( A) Federal Government treasury bills

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