One advantage of a money market mutual fund account is that:

A) it is guaranteed for a larger amount than are FDIC-insured deposits.
B) it is a riskless asset.
C) its holders typically earn more interest than they can with a regular bank account.
D) it earns high interest and is liquid.
E) it is completely liquid and riskless.

Money Market Mutual Fund Account

A money market mutual fund account is an investment vehicle that pools money from individuals to invest in low-risk, short-term securities, like treasury bills and commercial paper, typically offering a relatively safe place to park cash.

FDIC-insured Deposits

Deposits held in banks and financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) against bank failure up to a certain limit.

Liquid and Riskless

Refers to assets that can be easily converted to cash without significant loss of value and carry minimal risk of loss.