Money market mutual funds (MMMFS) are mutual funds specializing in money market instruments. Which of the following statements is NOT true about MMMFS? Select one: O a. They can be either taxable or tax-exempt. O b. There is no guarantee that the net asset value will be $1.00 or more. O c. They maintain a $1.00 net asset value to make them resemble bank accounts. O d. There is a common risk that a Net Asset Value for a MMMF will be less than $1.00 results in the term "breaking the buck."
Money market mutual funds (MMMFS) are mutual funds specializing in money market instruments. Which of the following statements is NOT true about MMMFS? Select one: O a. They can be either taxable or tax-exempt. O b. There is no guarantee that the net asset value will be $1.00 or more. O c. They maintain a $1.00 net asset value to make them resemble bank accounts. O d. There is a common risk that a Net Asset Value for a MMMF will be less than $1.00 results in the term "breaking the buck."
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Money market mutual funds (MMMFS) are mutual funds specializing in money market
instruments. Which of the following statements is NOT true about MMMFS?
Select one:
O a. They can be either taxable or tax-exempt.
O b. There is no guarantee that the net asset value will be $1.00 or more.
O c. They maintain a $1.00 net asset value to make them resemble bank accounts.
O d. There is a common risk that a Net Asset Value for a MMMF will be less than
$1.00 results in the term "breaking the buck."
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