Which of the following is classified as a money market mutual fund?

A. A "basket" of money pooled in by many investors to acquire securities based on the value of cash.
B. An investment in stocks

1 answer

A money market mutual fund is classified as:

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

Money market mutual funds typically invest in short-term, high-quality investments issued by government and corporate entities. They aim to provide liquidity and safety of principal while offering a return in the form of dividends. Option B, an investment in stocks, does not pertain to a money market mutual fund.