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aurific

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tT
发表于 2011-7-13 14:46 | 只看该作者

M2: why does it include M-Mkt MF's

Can someone explain to me why Money market mutual funds are included in M2. In terms of the Level 1 syllabus this is in Reading 24.

-J
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ftwcfa

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发表于 2011-7-13 14:46 | 只看该作者
They're very similar to a savings account. They earn interest, cannot be used to make purchases, but are readily redeemable into cash.

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Siddimaula

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发表于 2011-7-13 14:46 | 只看该作者
Thanks Marti. There is still some illiquidity in their conversion to cash and fluctuation in their values. Anyway, I will try to read more on this.

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