Funds which are used as an interest-bearing checking accounts are classified as

A money market funds
B capital market funds
C money mutual funds
D insurance money funds

Correct Answer: money market funds

Funds which are used as an interest-bearing checking accounts are classified as money market funds. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months.

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