Multiple choice

Which of the following is an important criterion to select a money market fund?

  1. Portfolio turnover

  2. Duration of the fund

  3. The expense ratio

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When selecting money market funds, all three criteria are relevant: portfolio turnover (indicates trading activity), duration (interest rate sensitivity), and expense ratio (cost impact). Each factor provides important information about the fund's quality and suitability.