Money Market Funds
Money market funds are an additional type of mutual fund. (Money market accounts, in contrast, are a type of bank deposit account and will not be addressed here.) Money market funds invest in high-quality, short-term debt instruments, such as commercial paper, banker’s acceptances, Treasury bills, and repurchase agreements. They are nearly as safe and liquid as bank accounts, with a higher yield. Money market funds pay dividends based on prevailing short-term interest rates. Money market funds are perfec