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CTP · Question #247

(Topic 3) Money market funds are able to obtain very competitive trading terms because:

The correct answer is B. of the economies of scale. See the full explanation below for the reasoning.

Question

  • (Topic 3)

Money market funds are able to obtain very competitive trading terms because:

Options

  • Athere is no diversification.
  • Bof the economies of scale.
  • Cinvested funds are locked in for a specific period of time.
  • Dthe investment manager only purchases high yielding instruments.

How the community answered

(53 responses)
  • A
    6% (3)
  • B
    75% (40)
  • C
    4% (2)
  • D
    15% (8)

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