Which of these is a typical holding of money market funds?
AAgricultural land
BUnlisted startup shares
CCommercial paper
DLong-term debentures
Answer & Solution
Correct answer: C. Commercial paper
Money market funds stick to highly liquid, low-risk short-term paper such as commercial paper and deposit certificates.
Keep practising Money Market
Browse all Money Market questions for CA Foundation, or explore more Business Economics topics.
Related questions
Eurodollar deposits are deposits in US dollars held where?Trading companies often buy bankers' acceptances to pay whom?Federal funds are usually lent on what basis?Accrual instruments are issued at face value and mature at what amount?How does a T-bill investor earn a return?Treasury bills (T-bills) are zero-coupon securities maturing in how long?What does a CD ladder strategy do?A longer CD term usually earns a higher rate, except when which condition applies?