SIE Exam Question 1042: Answer and Explanation

Question: 1042

Which of the following typically invest in high-quality, short-term investments, such as Treasury bills, commercial paper, and negotiable CDs? The underlying investments have an average maturity of 30 to 90 days.

• A. CDs
• B. Commercial paper
• C. Money market funds
• D. Treasury bonds

Correct Answer: C

Explanation:

Money market funds typically invest in high-quality, short-term investments, such as Treasury bills, commercial paper, and negotiable CDs. The underlying investments have an average maturity of 30 to 90 days.