EBK THE ECONOMICS OF MONEY, BANKING AND
EBK THE ECONOMICS OF MONEY, BANKING AND
4th Edition
ISBN: 9780100668201
Author: Mishkin
Publisher: YUZU
Question
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Chapter 13, Problem 14Q
To determine

Why can a money market mutual fund allow its shareholders to redeem shares at a fixed price while other mutual funds cannot?

Context Introduction:

A money market fund is a mutual fund that invests solely in money market instruments. They are generally the safest and the most secure mutual funds’ investments. Its principal is to preserve principal while yielding modest return. Mutual funds, on the other hand, are an investment company that collects money from many investors and invests that money in stocks, bonds etc. to yield higher rate of returns.

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