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Types of conservative funds - correct answer ✔✔Money market, bond funds, mortgage mutual funds.
Money Market Funds - correct answer ✔✔Short term, highly liquid fixed income investments. Usually
364 days or less.
Does the CDIC insure money market funds? - correct answer ✔✔No
How does the price of money market funds reflect the short term interest rates - correct answer ✔✔The
prices can fluctuate
Who issues money market funds? - correct answer ✔✔Governments
What is the objective of a money market fund? - correct answer ✔✔To earn stable returns in short term
securities
What is a risk associated with long term investing in money market funds - correct answer ✔✔Return
does not always keep up with inflation.
How are returns taxed on money market funds? - correct answer ✔✔interest income
Which two yield calculations do money market funds use to report performance? - correct answer
✔✔Current yield and effective yield.
What does "current yield" look at/ - correct answer ✔✔Return over the most recent seven day period