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Management · Q996

Financial Management

Graduate and Post Graduate · Management · question 996

Q996

Funds which are used as an interest-bearing checking accounts are classified as

A.
money market funds
Answer
B.
capital market funds
C.
money mutual funds
D.
insurance money funds

Answer: Option A

Solution

Answer: Option A
Solution:
Funds which are used as an interest-bearing checking accounts are classified as money market funds. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months.