Which of the following is classified as a money market mutual fund?
- An account giving 0.5% interest with no other limitations.
- A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
- A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
- an investment in stocks.
- A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
A money market mutual fund is a type of investment that pools money from multiple investors to purchase short-term debt securities, such as Treasury bills and commercial paper. It typically aims to provide a stable return with minimal risk. The option described as a "basket" of money pooled in by many investors to acquire securities based on the value of cash is the one that aligns with the definition of a money market mutual fund.