Investment VehiclesQuestion 39 of 110
A money market fund seeks to maintain which of the following characteristics?
a.Maximum long-term capital appreciation
b.A stable net asset value, typically $1.00 per share, with high liquidity
c.Exposure to volatile equity securities
d.A guaranteed return insured by the federal government
Explanation
Money market funds invest in short-term, high-quality instruments and aim to preserve a stable NAV, commonly $1.00 per share, while providing liquidity and modest income. They are not designed for capital appreciation. Although low risk, they are not federally insured like bank deposits.
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