Question

which of the following is classified as a money market mutual fund? (1 point)
an account giving 0.5% interest with no other limitations.
a \basket\ of money pooled in by many investors to acquire securities based on the value of cash.
a deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
an investment in stocks.

Explanation:

A money - market mutual fund is a type of mutual fund that invests in short - term debt securities, cash, and cash equivalents. It pools money from many investors.
The first option is just an account with interest (could be a savings account), the third is a time deposit (CD - like), and the fourth is a stock investment. The second option describes the pooling of money (a key aspect of mutual funds) to acquire cash - based securities (which is in line with money - market mutual fund's investment in cash and cash - equivalent securities).

Answer:

A “basket” of money pooled in by many investors to acquire securities based on the value of cash.