Products & Their RisksQuestion 113 of 398
A retail money market mutual fund generally seeks to maintain a stable net asset value of:
a.$1.00 per share
b.$10.00 per share
c.$100.00 per share
d.Whatever the market sets intraday
Explanation
A money market fund invests in short-term, high-quality debt instruments and typically strives to keep a stable $1.00 NAV per share, paying earnings out as dividends. Although generally low risk, money market funds are not federally insured, so a stable value is a goal rather than a guarantee.
Law Reference: Investment Company Act of 1940Practice all 398 questions free — no signup required.
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