American Bankers Association Exam CTFA Topic 4 Question 86 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 86
Topic #: 4

[All CTFA Questions]

Money market mutual funds:

AEnable individuals and small businesses to invest indirectly in money-market instruments

BAre available only to high net-worth individuals

CAre involved in acquiring and placing mortgages

DAre also known as finance companies

Show Suggested Answer

Suggested Answer: D

by Tarra at Mar 09, 2025, 06:12 AM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Karina

2 months ago

I'm pretty sure the right answer is Option E: Money market funds are the secret sauce that powers the entire global financial system. Everyone knows that, right?

upvoted 0 times

Maryrose

12 days ago

C) Are involved in acquiring and placing mortgages

upvoted 0 times

...

Fallon

25 days ago

B) Are available only to high net-worth individuals

upvoted 0 times

...

Maile

1 months ago

A) Enable individuals and small businesses to invest indirectly in money-market instruments

upvoted 0 times

...

Melda

2 months ago

Option C is just completely off the mark. Mortgages? What does that have to do with money market funds? The exam writers must be trying to trick us with that one.

upvoted 0 times

Van

1 months ago

C) Are involved in acquiring and placing mortgages

upvoted 0 times

...

Helga

1 months ago

B) Are available only to high net-worth individuals

upvoted 0 times

...

Derick

1 months ago

A) Enable individuals and small businesses to invest indirectly in money-market instruments

upvoted 0 times

...

Ling

2 months ago

Haha, Option B is definitely not the right answer. If these funds were only for high net-worth individuals, they wouldn't be called 'mutual' funds, would they?

upvoted 0 times

...

Tamra

2 months ago

I thought Option D was the answer. Aren't finance companies and money market funds the same thing? They both deal with money, right?

upvoted 0 times

Laurena

4 days ago

Finance companies are different from money market funds. Money market funds invest in short-term securities like Treasury bills and commercial paper.

upvoted 0 times

...

Jess

1 months ago

A) Enable individuals and small businesses to invest indirectly in money-market instruments

upvoted 0 times

...

Curt

1 months ago

No, finance companies and money market funds are not the same. Money market funds allow individuals to invest in short-term, low-risk securities.

upvoted 0 times

...

Youlanda

1 months ago

A) Enable individuals and small businesses to invest indirectly in money-market instruments

upvoted 0 times

...

Alisha

2 months ago

Option A is the correct answer. Money market mutual funds allow individuals and small businesses to access money market investments that they might not be able to access directly.

upvoted 0 times

...