Money market funds are A. accounts that allow small investors to participate in buying large-denomination securities. B. extremely risky but high-yielding accounts used by large corporations to finance operations. C. accounts that allow small investors to buy shares in companies that then buy shares of common stock. D. pools of bonds held by large utility companies.

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Business

Emilia Henson

28 April, 19:19

Money market funds are A. accounts that allow small investors to participate in buying large-denomination securities. B. extremely risky but high-yielding accounts used by large corporations to finance operations. C. accounts that allow small investors to buy shares in companies that then buy shares of common stock. D. pools of bonds held by large utility companies.

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Claire Thomas · Answer 1

A. accounts that allow small investors to participate in buying large-denomination securities.

Explanation:

Money market funds are a distinct type of mutual funds. These are the investments made only in liquid instruments which are high. Some of these instruments are cash equivalent securities, cash. Such funds stand lower in terms of risk. Also, they provide high liquidity. They work in a similar way as mutual funds.