Discuss three functions of the money market. Describe three of functions of mutual funds.

Discuss three functions of the money market.
Describe three of functions of mutual funds.

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jeff jeffy answered 1 year ago

Describe the three functions of Money?

1. A mutual fund company offers its customers a variety of funds: a money-market fund, three...

1. A mutual fund company offers its customers a variety of funds: a money-market fund, three different bond funds (short, intermediate, and long-term), two stock funds (moderate and high-risk), and a balanced fund. Among customers who own shares in just one fund, the percentages of customers in the different funds are as follows. Money-market 25% High-risk stock 16% Short bond 10% Moderate-risk stock 25% Intermediate bond 8% Balanced 11% Long bond 5% A customer who owns shares in just one...

Why might money market mutual funds encourage risk-taking?

Describe the following types of funds: Bond fund Money market mutual fund Index fund Sector fund

Shares in money market mutual funds are priced on the basis of a. Net asset value...

Shares in money market mutual funds are priced on the basis of a. Net asset value b. Amortized cost c. Real-time values d. The yield on 91-day Treasury bills

Compare and contrast money market deposit accounts versus money market mutual funds, MMDA's vs. MMMF's, including...

Compare and contrast money market deposit accounts versus money market mutual funds, MMDA's vs. MMMF's, including how they are offered and how they are insured.

Problem 4-4 Money Market Funds (LO2, CFA2) The Aqua Liquid Assets Money Market Mutual Fund has...

Problem 4-4 Money Market Funds (LO2, CFA2) The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.1 percent. If you had invested $30,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Final Shares ______ Net Asset...

During the 1990s, American depositors dramatically increased the share of their funds in money market mutual...

During the 1990s, American depositors dramatically increased the share of their funds in money market mutual fund accounts. Although these accounts have restrictions (such as limited access to funds and minimum deposit requirements), they offer depositors higher interest rates versus standard checking. The widespread use of financial instruments during the 1990s led to a decrease in money demand because people held a smaller share of their deposits in checkable accounts (demand deposits). a. How would this shock affect the U....

Why is simply counting currency an inadequate measure of money? Discuss the three functions of money

Define a money market. (b). State and explain four money market instruments. (c). Explain three functions...

Define a money market. (b). State and explain four money market instruments. (c). Explain three functions or uses of money markets. (d). What are the determinants of money market instruments.

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