What is a Money Market Fund?
A Money Market Fund is a type of _______ fund
mutual
Which type of Money Market Fund has the lowest risk?
Government
What price is a Money Market Fund usually at?
$1
You __________ expect some capital gains or losses.
a. should
b. should not
b. should not
People should buy Money Market Funds for _________ expenses
short-term
Money Market Funds __________ compounding
a. allow
b. don't have
a. allow
What are three types of Money Market Funds?
Tax-exempt, prime, and government
The money earned is from these low risk securities.
Debt securities
You can buy Money Market Funds from a _________ like Charles Schwab.
Broker/broker company
Savings accounts have lower ___________ than Money Market Funds.
percentage returns
Earnings are technically given as _______
dividends
What types of Money Market Funds have taxes?
prime and government
What is it called when the share price goes below the target price in a Money Market Fund?
Breaking the buck
The expense ratio is multiplied by the amount _________ and determines the fee the shareholder pays in a Money Market Fund.
invested
Opposed to CDs and savings accounts, Money Market Funds are more ________.
liquid
Three benefits of Money Market Funds are
1.
2.
3.
1. Low risk
2. Very short-term
3. Very liquid
What do prime funds invest in?
corporate debt
What is a reason that Money Market Funds stable at $1?
They are managed by asset companies
Two examples of companies to purchase Money Market Funds are:
2/3 of Vanguard, Fidelity, Charles Schwab
Why are Money Market Funds so liquid?
They are bought and sold as shares.
or
They have stable share prices so you do not have to worry about depreciation.
or
They invest extremely short-term investments.
What is the average time period of returns?
Usually a few weeks or months
Why does the lowest risk Money Market Fund have the lowest risk?
mutual, debt
What is the expense ratio?
(Total funds costs/total funds assets)
or
(total operating costs/total funds assets)
Companies with ______________ should invest in ______-exempt funds