The expansion of money market funds represents an increase in what type of money?

The expansion of money market funds represents an increase in what type of money?

 

Answer:

money market funds represents an increase in short term debt securities through mutual fund such as US treasury bills and commercial paper. they are just like banks and provides even better safety than banks with higher yield. these funds provide liquidity to financial intermediaries. it maintaines the liquidity by avoiding losses through credits, market and liquidity risks under SEC. it is included under securities like commercial paper, short term bonds, repurchase agreements and other money funds.

Asked on February 13, 2018 in economics.
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