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IIA

IIA-CFSA · Question #191

___________ are a type of mutual funds that is required by law to invest in highly liquid and low-risk securities such as certificates of deposits or government securities. These funds pay dividends…

The correct answer is A. Money market funds. See the full explanation below for the reasoning.

Question

___________ are a type of mutual funds that is required by law to invest in highly liquid and low-risk securities such as certificates of deposits or government securities. These funds pay dividends that generally reflect short-term interest rates and are not federally insured. Due to low-risk nature of the investments, these funds rarely lose money.

Options

  • AMoney market funds
  • BTrust funds
  • CCollateral funds
  • DIndex funds

How the community answered

(35 responses)
  • A
    77% (27)
  • B
    6% (2)
  • C
    3% (1)
  • D
    14% (5)

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