Ch.2 · Mutual Fund Structure Basics · medium
Which of the following is a money market instrument that a liquid or money market fund may invest in?
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EXPLANATION
Commercial Paper (CP) is a short-term unsecured money market instrument issued by corporates with maturities of 7 days to 1 year. It is a key investment for liquid and money market funds. Other money market instruments include T-bills, Certificates of Deposit, and CBLO/Tri-party repos.
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