Which of the following is classified as a money market mutual fund?(1 point) Responses An account giving 0.5% interest with no other limitations. An account giving 0.5% interest with no other limitations. A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest. A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest. A “basket” of money pooled in by many investors to acquire securities based on the value of cash. A “basket” of money pooled in by many investors to acquire securities based on the value of cash. An investment in stocks.

1 answer

The correct option that is classified as a money market mutual fund is:

A “basket” of money pooled in by many investors to acquire securities based on the value of cash.

Money market mutual funds invest in short-term, high-quality investments issued by government and corporate entities, typically using pooled funds from many investors. The other options listed do not describe a money market mutual fund.