Investment VehiclesQuestion 95 of 100
A money market fund seeks to:
a.Maximize capital appreciation through equities
b.Provide leveraged exposure to commodities
c.Guarantee a fixed return above inflation
d.Preserve capital and provide liquidity by investing in short-term, high-quality debt
Explanation
A money market fund invests in short-term, high-quality debt instruments aiming to preserve principal and provide liquidity with modest income. It is not designed for capital appreciation and is not federally guaranteed. It suits cash-management needs within a portfolio.
Practice all 100 questions free — no signup required.
Related questions on this topic
- A convertible bond gives the holder:
- An investor writes a covered call. This strategy:
- A unit investment trust (UIT):
- Compared with corporate bonds, municipal bonds of similar credit quality typically offer:
- An equity-indexed (fixed-indexed) annuity typically credits interest based on:
- High-yield (junk) bonds are characterized by:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NASAA Series 66 Uniform Combined State Law Exam · How we review