Q186
Money market funds were a financial innovation partly inspired to circumvent __________.
A.
Regulation Q, which is no longer in existence
AnswerB.
Regulation M
C.
Regulation D
D.
Regulation B, which is still in existence
Answer: Option A
Solution
Answer: Option A
Solution:
Money market funds were a financial innovation partly inspired to circumvent Regulation Q, which is no longer in existence. 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. As a result, these funds offer high liquidity with a very low level of risk.