Income Beginner: Introduction to Money Market Funds

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1.
You are allowed to write checks from a money market mutual fund.
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True. This is one of the many popular features offered by these funds, but you must write your checks for at least a certain amount, such as $250.
2.
Money market funds that invest in short-term Treasury bills have yields that are ________ than non-Treasury money market funds.
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Lower. US Treasury money market funds generally have lower yields than other money market funds.
3.
The Federal Deposit Insurance Corporation and the National Credit Union Share Insurance Fund do not insure money market mutual funds.
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True. Some investors consider this a disadvantage.
4.
All of the following are privileges of owning a money market fund except that ______.
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All of the above may be privileges of a money market fund. Money market funds have many privileges, which make them attractive and versatile.
5.
Money market mutual funds invest in _______.
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Short-term debts. The money market is the market for the short-term debts of corporations and government units.