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Basic Question 9 of 15
Mutual funds that allow deposits and withdrawals with minimal transactions fees ______
B. serve as a medium of exchange and should not be counted as part of the M-2 measure of the money supply.
C. offer great liquidity so that owners of the mutual funds have quick and cheap access to additional purchasing power.
A. serve as a medium of exchange and should be counted as part of the M-1 measure of the money supply.
B. serve as a medium of exchange and should not be counted as part of the M-2 measure of the money supply.
C. offer great liquidity so that owners of the mutual funds have quick and cheap access to additional purchasing power.
User Contributed Comments 7
| User | Comment |
|---|---|
| cbb1 | Mutual funds are not part of M-1, M-2 or M-3 and are not a medium of exchange. |
| bobert | Money market mutual funds are included in M2. |
| magicchip | bobert is right. M2 includes MM funds. |
| DannyZhou | The last one is a better choice since the question didn't specify it is a money market mutual fund. |
| gill15 | What does this question have to do with this section? |
| gill15 | never mind |
| Inaganti6 | Try telling the Apple store guy you'll give him your mutual fund in exchange for the new macbook , all while you point to your fund on your smartphone trading app! |
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Barnes
Learning Outcome Statements
describe qualities of effective central banks; contrast their use of inflation, interest rate, and exchange rate targeting in expansionary or contractionary monetary policy; and describe the limitations of monetary policy
CFA® 2024 Level I Curriculum, Volume 1, Module 4.