Liquidity is important to investors in a money market fund because: A. investors generally invest long term in money market shares. B. liquidity provides a guarantee against loss of principal. C. many investor transactions are likely to occur. D. shares are sold to the public at a specified price.
The right answer for the question that is being asked and shown above is that: "C. many investor transactions are likely to occur. " Liquidity is important to investors in a money market fund because many investor transactions are likely to occur.
Liquidity is important to investors in a money market fund because "many investor transactions are likely to occur".
Liquidity depicts how much a benefit or security can be rapidly purchased or sold in the market without influencing the advantage's cost.
Market liquidity alludes to the degree to which a market, for example, a nation's securities exchange or a city's land showcase, enables advantages for be purchased and sold at stable costs. Money is viewed as the most fluid resource, while land, compelling artwork and collectibles are all moderately illiquid.