- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 3. Portfolio Management: An Overview
- Subject 5. Pooled Investments
CFA Practice Question
The major difference between a bond mutual fund and a money market fund is the ______.
B. safety of the underlying assets
C. size of these funds
A. maturity of the underlying assets
B. safety of the underlying assets
C. size of these funds
Correct Answer: A
In a money market fund the maturity is as short as overnight and rarely longer than 90 days. Bonds in a bond mutual fund have maturities from 1 to 30 years.
User Contributed Comments 2
| User | Comment |
|---|---|
| santibanez | However the underlying assets to an overnight repo (money market) can be a long term maturity bond.... |
| 10425406 | overnight placements as money market bonds one y |