Question
A Money Market Mutual Fund is not a very liquid account from a saver's perspective a. True b. False
Answer
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(292 Votes)
Hudson
Elite · Tutor for 8 years
Answer
b. False
Explanation
A Money Market Mutual Fund (MMMF) is designed to be a low-risk investment that offers high liquidity and pays higher interest than a regular savings account. These funds typically invest in short-term, high-quality investments issued by government or corporate entities. Unlike certain savings accounts or investments with longer-term commitments, an MMMF allows easy access to funds. Hence, from a saver’s perspective, it qualifies as a liquid account since it provides fairly rapid access to money.