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Money Market Funds Explained

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What Is a Money Market Fund?

How do money market funds work, prime money market fund, government and treasury funds, tax-exempt funds, who should consider investing in money market funds.

• Frequently Asked Questions

Money market funds, also known as money market mutual funds, are a type of low-risk, high liquidity investment. They comprise near-term, short-maturity securities, including cash, cash equivalents, Treasury funds, and certificates of deposit.

Money market funds are regulated by the US Securities and Exchange Commission . They are a popular investment option provided by mutual fund companies, banks, and brokerages. 

The primary purpose of a money market fund is to offer investors flexible opportunities that carry a low level of risk. Money market mutual funds are among the least volatile and most liquid investment types. 

In this guide to money market funds, we’ll explain what they are, how they work, what advantages and disadvantages they offer, and which types are available. 

If you’re new to investing or you’re considering diversifying your investment portfolio to include low-risk investments, you may be wondering what a money market fund is. 

A money market fund is a type of mutual fund that enables investors to invest in liquid securities with a maturity of 13 months or less (with the exception of government funds). 

These debt securities are characterized by their maturity and very low credit risk. The type of money market fund will dictate the kind of instruments held. There are three main types of money market funds in the US:

• Prime funds (also known as general purpose)
• Tax-exempt funds (also known as municipal funds)
• Government and Treasury funds

It is important to note that money market funds are not the same as money market accounts. 

A money market account is a type of savings account that earns interest on deposits. MMAs are available from banks and other financial institutions and are insured by the Federal Deposit Insurance Corporation. There are benefits to investing in top-rated money market accounts , but in most cases, there are limitations that make them less flexible than other types of savings accounts. 

Money market funds work in a similar way to typical mutual funds. They issue shares or units to investors and operate according to guidelines set by the SEC. 

There are various types of debt securities and instruments that funds can invest in. These include:

• Banker’s acceptance
• Certificate of deposit
• Commercial papers
• US Treasury bills
• Repurchase agreements

Money market mutual funds offer a selection of products to investors. The net asset value is designed to stay at $1 per share . There have only been a couple of situations where the value has dropped below $1, including the financial crisis of 2008 . 

Excess earnings on money market funds are distributed among investors via dividends. The $1 NAV is one of the primary motivators for investors, as it facilitates regular payments from fund managers to fund holders. 

The returns of the instruments contained within a money market fund are dependent on market interest rates. This means that the overall reward also fluctuates in line with changing interest rates. 

Types of Money Market Funds

Funds are classified into several categories according to the maturity period and the type of investment assets.

Also known as general purpose funds, prime money market funds invest in floating-rate debt and commercial papers issued or assigned by non-Treasury entities, including US government agencies or organizations and enterprises sponsored by the government, known as GSEs. 

Government and Treasury funds invest in cash and instruments backed by the US government, including Treasury bills, 100% collateralized repurchase agreements, Treasury bonds, and government securities. 

Tax-exempt funds, also known as municipal funds, are exempt from federal taxes. In some cases, they may also be exempt from state taxes. Municipal funds can be classed as national municipal or state municipal. 

Pros and Cons of Money Market Funds

Although generally safe, money market investments are not free from risk and disadvantages. If you are thinking about buying shares of money market funds, it’s wise to consider the pros and cons first. 

The advantages of money market funds include:

• Very low risk: One of the main reasons money market funds are so popular. Beginners may not want to experiment with high-risk investments, while experienced investors may wish to consider money market funds as a means of diversifying their investment portfolio to manage risks. 
• High liquidity: Money market funds offer high liquidity in comparison with other types of investments, which gives investors more freedom and flexibility. A liquid investment can easily be converted into cash without the investor losing money. 
• Higher returns than bank accounts: Money market funds are considered a low-risk, low-return investment option, but they do offer superior returns to regular savings accounts. 
• Stability: Money market funds are among the least volatile types of investment funds.
• Regulation of money market funds for added security: Money market funds are regulated by the SEC. Fund managers must comply with regulations, which enhances security and provides investors with peace of mind. 
• Short-term investment options: If you’re looking for a short-term investment option that doesn’t carry a high level of risk or uncertainty, this could be an ideal solution.
• Tax benefits: In some cases, investors can benefit from tax exemption by investing in money market funds. Municipal money market funds offer a means of earning money without paying federal and/or state taxes. 

The disadvantages of money market funds include:

• Not insured by the FDIC: Unlike other types of CDs and savings accounts, money market funds are not insured by the Federal Deposit Insurance Corporation. This means that there is a low risk of losing money.
• Low returns: Money market returns are usually lower than those of other investment types, as capital appreciation is limited and risks are low. More volatile investments, such as stocks and bond mutual funds, can be more profitable.
• Price fluctuation: There is a risk of price fluctuations due to changes in interest rates and other factors that influence share prices.

Money market funds are suitable for a wide range of investors, including:

• Beginners looking for safe ways to grow their money in the short term
• Investors who have a short-term investment goal
• Investors with a low risk tolerance
• Investors searching for opportunities with minimal volatility
• Experienced investors looking for low-risk strategies to diversify their portfolio
• Investors who want highly liquid instruments
• Investors who want to use the portfolio of a money market fund to offset the risks of more volatile investments, such as stocks
• Investors looking to hold their money in a relatively safe fund while they wait for other opportunities

The History of Money Market Funds

Launched in the US in the 1970s , money market funds were designed to provide a simple, safe way to invest money in securities that often offered better returns than savings accounts. Originally, these funds comprised only government bonds, but today, there is a much wider range of bonds and securities available. 

Following the financial crash in 2008, the SEC introduced new measures to improve money market fund management. 

In 2010 , the SEC made rules more robust to enhance stability. It enforced tougher restrictions on money market portfolio holdings. In 2016 , it announced further changes to regulations. Prime money market funds were required to float the NAV rather than maintain the stable value. 

Today, money market funds are considered a safe investment option for beginners, as well as experienced investors who want to diversify their portfolios or hold their cash while they wait for new opportunities to come along.

How are money market funds taxed?

Money market funds are divided into two categories: taxable and tax-exempt. Municipal money market funds are exempt from federal and state taxes in some cases. Funds that are taxable are liable for regular federal and state taxes. 

Are money market funds safe?

Money market funds are a low-risk investment opportunity. They are generally considered to be a safe option for investors. The target value per share is $1. The value has only dipped below this on a few occasions, and every time it has recovered quickly. 

What is an example of a money market fund?

There are three types of money market funds: prime, municipal or tax-exempt, and government and Treasury. Money market funds invest in near-term debt-based securities with high liquidity and low volatility. Examples of money market fund securities and instruments include CDs, Treasury papers and bills, cash and commercial papers. 

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The Fabulous Yields, and Lurking Risks, of Money Market Funds

The funds are paying enticing interest rates right now. But the debt ceiling and signs of weakness in the banking system are worrisome, our columnist says.

By Jeff Sommer

Jeff Sommer is the author of Strategies , a weekly column on markets, finance and the economy.

The markets have been rocky ever since the Federal Reserve started raising interest rates to combat inflation last year.

Stocks and bonds have lost money. The costs of financing a car, a house or even a small credit-card purchase have risen. Two important regional U.S. banks failed and needed bailouts, and worries about a possible recession have spread.

But it’s been a glorious time for one part of the financial world: money market mutual funds. The biggest money funds tracked by Crane Data are paying more than 4.6 percent interest, and a handful have yields around 5 percent.

Their gaudy interest rates closely follow the Fed funds rate, set by the central bank. The effective Fed funds rate is now about 4.83 percent. That’s onerous for people who need to borrow money, and deliberately so: The Fed is raising rates because it is trying to squelch inflation by slowing the economy.

What’s painful for borrowers is great for people who need a place to park money they have put aside to pay the bills. In a bid to hold onto customers, some banks have begun raising rates in savings accounts and for certificates of deposit, though most bank deposits remain in accounts that pay close to nothing.

That’s given money market funds magnetic appeal. Their assets have swollen to more than $5.6 trillion , from $5.2 trillion in December 2021, when the Fed began talking about impending interest rate increases. Money market funds are likely to keep growing if the Fed holds rates at their current level, or raises them further.

I’ve used money market funds on and off for decades with no problems, and consider them to be fairly — though not entirely — safe. I think it’s reasonable to put some of your cash in them, as long as you are careful and keep your eyes wide open.

The Landscape Shifts

In June, when money market rates jumped from the near-zero level at which they had languished to as much as 0.7 percent, I pointed out that for the first time in ages, it made sense to start shopping around for places to park your cash.

The days of being consigned to receiving nothing for the privilege of keeping your money in a financial institution were over, if you were willing to make a move. When interest rates started to rise, money market rates started levitating immediately, opening up a wide gap with bank deposit rates.

By now, that gap has widened to its greatest level in decades. The advantages of money market funds are increasingly obvious, not just for the corporate financial officers who have always used them as an efficient and high-yielding place to hold money, but for thousands of ordinary people, who are at last receiving something for their cash.

Say you’ve got $10,000 to stash somewhere. Keep it in a checking account, and you will receive nothing, or close to it. Keep it in a money-market fund paying 5 percent for a year and you will receive $500.

That won’t make you rich. Depending on consumer prices, you could lose purchasing power in inflation-adjusted terms. Right now, money market yields are just beginning to approach the annual rate of the Consumer Price Index , which was 5 percent in March. But compared with nothing, $500 is wonderful.

Some banks are beginning to offer competitive rates with insurance from the Federal Deposit Insurance Corporation — Apple , for example, has partnered with Goldman Sachs, and is marketing a 4.15 percent interest account. Many other financial institutions are competing for attention, too, but they generally lag money market rates.

In short, if you are a money-market fund investor, rising interest rates can be delightful. But in finance, a benefit is rarely without cost.

Known Vulnerabilities

Investors have never had major losses in money market funds in the United States, and I find that record comforting.

But it doesn’t mean that the funds are without risk.

For one thing, there are already indications that their growing popularity comes partly at the expense of banks, especially smaller ones that have lost deposits. Such losses — which contributed to the collapses of Silicon Valley Bank and Signature Bank last month — have created stress in the entire financial system.

More than $560 billion in deposits exited the commercial banking system this year through April 5, according to government figures . At the same time, more than $442 billion flowed into money market funds, according to Crane Data. That’s been great for the income of the fund investors, but it’s not an unalloyed good for financial institutions.

You can see this in individual companies. At Charles Schwab , for example, which has just reported its quarterly earnings, the firm’s banking arm lost $41 billion in deposits in the first three months of the year. At the same time, Schwab’s money market funds gained $80 billion.

For Schwab customers, the shift has been a tremendous boon. It means a big surge in income for them. For the company’s shareholders, though, it means a crimp in profits. As a company, Schwab says, it is strong enough to handle the shift. That may be so, but not all financial institutions are in solid shape right now.

Financial regulators are monitoring these issues closely.

Money Market ‘Runs’

It’s not just banks that are vulnerable to “runs” — panics, in which people scramble to withdraw their money, spurring others to do the same, in a vicious cycle.Money market funds are periodically subject to runs, too.

There have been only two known incidents in which money market funds were unable to pay 100 cents on each dollar invested in them — they “broke the buck, ” in Wall Street jargon — and, despite headaches and long payment delays, no significant losses occurred in those cases.

But there have been many near misses. A 2012 report by the Federal Reserve Bank of Boston found more than 200 instances in which companies that ran money market funds quietly poured money into them to ensure that the funds could pay investors 100 percent of the money they expected.

Recall that the Fed had to restore calm during money market runs in 2008 and again in 2020, during a brief crisis at the start of the coronavirus pandemic. The Securities and Exchange Commission, which regulates money market funds, has already tightened its rules twice, and it is proposing additional changes .

Federal involvement in the money markets has become a constant thing. Since the 2020 crisis, money market funds have increasingly relied on a Fed backstop — the reverse repurchase agreement operations, or “reverse repo,” of the Federal Reserve Bank of New York. Most of the holdings of many money market funds are Treasury securities sold overnight by the Fed. In total, more than $2.2 trillion in securities are tied up in this market.

On March 30, in the midst of the latest banking crisis, Treasury Secretary Janet L. Yellen targeted money market funds as an area of special concern. “If there is any place where the vulnerabilities of the system to runs and fire sales have been clear-cut, it is money market funds,” she said. “These funds are widely used by retail and institutional investors for cash management; they provide a close substitute for bank deposits.”

While noting the regulatory tightening that had already occurred, Ms. Yellen said that much more needed to be done. “The financial stability risks posed by money market and open-end funds have not been sufficiently addressed,” she said.

How to Use Them

These days, I have a variety of places to stash the cash I’ll need to pay the bills.

These include accounts at a major global commercial bank, a credit union, an online high yield F.D.I.C.-insured savings bank and a low-fee money-market fund with a large, reputable asset management company. Over the past year or two, I’ve kept some money in all of these, though the money market fund has become my favorite lately, because it generates steady cash.

But when the Fed drives interest rates back down — that could happen soon if there’s a recession, or many months from now, if inflation is persistent — money-market fund rates will drop, too, and I’ll reduce my holdings in them.

I’m also aware of the potential perils associated with money market funds. To minimize risk, I use a so-called government fund — one that holds only Treasury bills, other securities of the U.S. government and of U.S. agencies, and reverse repo securities at the Fed. That eliminates the possibility that my fund will hold securities issued by a private company that goes belly up — as Lehman Brothers did in 2008, causing trouble for some money market funds.

Of course, Treasury bills aren’t 100 percent safe either, not with the federal debt ceiling looming. Mind-boggling as this may be, it is possible that the U.S. government could default on its debt. Many money market funds are avoiding Treasury bills that could come due during a debt ceiling stalemate.

Ultimately, I expect reason to prevail and the U.S. government to pay all its bills. Should it default on Treasury obligations, after all, no other financial security in the United States would be entirely safe.

Still, for the money I really need, I’ll be sure to have a higher proportion of my cash in F.D.I.C.-insured accounts when the climax of the debt ceiling fight seems to be upon us, possibly as soon as June.

That’s why, even when it comes to safe places to keep your cash, the general rules of investing apply: Diversify your holdings, and try to understand how much risk you are taking with your money.

I worry about money market funds. They aren’t 100 percent safe. But I’m grateful to have them.

Jeff Sommer writes Strategies , a column on markets, finance and the economy. He also edits business news. Previously, he was a national editor. At Newsday, he was the foreign editor and a correspondent in Asia and Eastern Europe. More about Jeff Sommer

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Thematic Review on Money Market Fund Reforms: Peer review report

Addressing vulnerabilities in money market funds is a key element of the FSB’s work programme to enhance the resilience of the non-bank financial intermediation sector.

Money market funds (MMFs) are important providers of short-term financing for financial institutions, corporations, and governments. MMFs are also used by retail and institutional investors to invest excess cash and manage their liquidity.

MMFs are subject to two broad types of vulnerabilities that can be mutually reinforcing: they are susceptible to sudden and disruptive redemptions, and they may face challenges in selling assets, particularly under stressed conditions. The prevalence of this liquidity mismatch, which crystallised during the March 2020 market turmoil, may depend in individual jurisdictions on market structures, use, and characteristics of MMFs.

In 2021, the FSB published a report with policy options to address MMF vulnerabilities by imposing on redeeming investors the cost of their redemptions; enhancing the ability to absorb credit losses; addressing regulatory thresholds that may give rise to cliff effects; and reducing liquidity transformation. This peer review takes stock of the measures adopted or planned by FSB member jurisdictions in response to that report, including those jurisdictions’ evidence-based explanation of relevant MMF vulnerabilities and policy choices made. The review does not assess the effectiveness of those policy measures, as this will be the focus of separate follow-up work by the FSB in 2026.

Press Release

27 february 2024 fsb review finds uneven implementation of money market fund reforms, related information, 16 august 2023 thematic peer review on money market fund reforms: summary terms of reference and request for public feedback, 11 october 2021 policy proposals to enhance money market fund resilience: final report.

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Money market fund risks

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• 1. Choosing a liquidity investment
• 2. Evaluating and managing risks
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Assessing risk in money market funds

Because they invest in fixed income securities, money market funds and ultra-short duration funds are subject to three main risks: interest rate risk, liquidity risk and credit risk.

Interest rate risk

Interest rate risk measures the impact of changes in rates on the securities held by money market funds.

If interest rates increase, the value of a money market fund’s investments generally declines, and vice versa. Securities with longer maturities typically offer higher yields, but have greater interest rate sensitivity.

Usually, changes in the value of fixed income securities will not affect cash income but may affect the value of an investment in the fund.

Weighted average maturity (WAM) and duration measure the sensitivity of a bond’s price to changes in interest rates. The interest rate risk of a fund can be mitigated by limiting the maximum WAM or duration of the product.

Liquidity risk

Liquidity risk can result from market volatility or from a lack of liquidity in underlying securities held by a fund.

Mitigating liquidity risk is most important for money market funds because they are meant to be used for daily cash needs.

There are two main types of liquidity risks faced by money market funds: funding liquidity risk (if the fund’s liquidity is insufficient to meet redemptions) and market liquidity risk (if market volatility forces funds to sell securities below the mark-to-market price in order to meet large redemptions or maintain regulatory limits).

To minimise funding liquidity risk, funds can maintain high overnight cash balances, build a strong ladder of maturities and institute cautious concentration limits to create a diversified investor base.

The latest regulations and rating requirements typically specify minimum requirements for daily liquid assets (DLA) and weekly liquid assets (WLA). Fund managers will typically hold higher DLA and WLA to provide an additional cushion against unexpected outflows.

Market liquidity risk can be mitigated by holding smaller concentrations of each issue with diversified maturities — particularly for less liquid securities — which can help minimise the impact of security price volatility. Money market funds typically pursue a buy-and-hold investment strategy, which can help them weather market liquidity risk, as securities mature at par. Maintaining strong broker relationships can also help ensure liquidity is maintained.

Credit risk

Credit risk measures the likelihood that issuers or counterparties will default or be downgraded.

Default risk is the failure to repay on securities, time deposits or repurchase agreements. Downgrade risk is the risk that the credit rating of a security or issuer may be reduced by a credit rating agency.

An increase in credit risk can lead to greater volatility in the price of the security, thereby impacting the value of the fund. A money market fund may also become a forced seller, because the security no longer meets regulatory or rating agency rules — while at the same time, the reduced rating may affect the security’s liquidity, making it more difficult for the fund to sell it.

Credit risk can be mitigated through the use of external or internal credit research, designed to monitor the credit quality of the issuer or counterparty. Credit rating agencies, either international or domestic, publish credit ratings that are an opinion on the default risk of a particular bond or issuer. Rating agencies also signal the likely future path of credit ratings with a “rating outlook” for the next six to 24 months and a “rating watch” for a three-month time horizon.

Rating agencies generally need to consider multiple factors and parties before taking rating action, which may limit their effectiveness. Therefore, a comprehensive, internal credit analysis process and credit risk management framework, that is integrated with a money market fund’s portfolio management, can minimise the risk of suffering unanticipated downgrades or defaults.

Stress testing to measure risk

Stress tests are the best method of risk analysis for money market funds and ultra-short duration funds, and are required by several regulators. Risk managers can use stress tests to ensure funds are conservatively managed with sufficient capacity to avoid a significant decline in the value of an investment in the fund.

Here is an example of a stress test that considers a money market funds’ sensitivity to changes in interest rates (x-axis), credit spreads (y-axis) and liquidity flows. 

Credit risk management

Having an experienced and independent internal credit research team is increasingly critical to avoiding downside credit risks. Liquidity investors should therefore carefully review a fund manager’s credit research and credit risk management team and process when selecting a fund.

The credit risk management team’s primary function is establishing appropriate concentration and tenor limits based on the assigned internal credit rating to properly manage credit risks. Better-rated issuers generally receive higher concentration and tenor allocations

Securities with higher credit ratings are lower less risk than lower-rated securities. A strong internal credit analysis process will use independent internal ratings, in addition to considering those of the external rating agencies. These internal ratings are often more conservative than the external ones.

Concentration

Credit risk can be managed by reducing the concentration of lower-rated securities in the fund. Each issuer is assigned a portfolio concentration limit corresponding to its internal rating, which is lower than the regulatory or rating agency limit and represents the ceiling.

Tenor is the length of time a security has until maturity. Each issuer is assigned a tenor limit corresponding to its internal rating that is lower than the regulatory or rating agency limit, which represents the ceiling. A shorter tenor minimises the risk that a security will be downgraded or default before maturity.

Five key fundamental credit considerations

1.        Capital should be tangible and appropriate relative to earnings volatility.

2.        Asset quality is assessed through the underlying credit quality and inherent liquidity of underlying assets.

3.        Management should be consistent and operate with integrity.

4.        Earnings are reviewed for consistency and quality over prolonged time periods.

5.        Liquidity is assessed through matched funding, backup credit lines or a stable retail funding base (for banks). 

Other factors to be considered in robust credit analysis

• Industry and operating trends, including cash flows, industry or product dominance and relative performance compared with peer groups, can be insightful in analyzing credit risk.
• Alternative repayment options, such as providing collateral, usually offer better recovery value in a credit event

Fund ratings

When selecting a liquidity product, money market fund ratings given by independent credit rating agencies can be a good starting point for assessing a fund’s security and creditworthiness.

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Schwab Money Funds

Designed to offer stability of capital, liquidity, and income.

• A convenient way to access potentially higher yields on cash
• Access to a range of taxable and tax-exempt money funds 1
• No transaction fees to buy or sell 2
• Minimum investment as low as $0*

What is a money market fund?

A Money Market fund is a mutual fund that invests in short-term, higher quality securities. Designed to provide high liquidity with lower risk, stability of capital and typically higher yields than some other cash products.

Compare these money fund types

Ready to get started, prime money funds3 (taxable), prime money funds 3  (taxable).

These funds invest in high-quality, short-term money market securities issued by U.S. and foreign entities, including corporations, financial institutions, and the U.S. government.

• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4
• Minimum Initial Investment
• Eligible Investors 3
• Schwab Value Advantage Money Fund® – Investor Shares ( SWVXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.18%
• Minimum Initial Investment $0*
• Eligible Investors 3 Retail
• Next Step Buy
• Schwab Value Advantage Money Fund® – Ultra Shares ( SNAXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.33%
• Minimum Initial Investment $1,000,000

Government and Treasury Money Funds (Taxable)

These funds invest in short-term U.S. government debt securities with holdings in U.S. Treasury obligations or repurchase agreements.

• Eligible Investors 3  
• Schwab Government Money Fund – Investor Shares ( SNVXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.03%
• Eligible Investors 3   Retail/Institutional 
•  Next Step Buy
• Schwab Government Money Fund – Ultra Shares ( SGUXX )
• Schwab Treasury Obligations Money Fund – Investor Shares ( SNOXX )
• Schwab Treasury Obligations Money Fund – Ultra Shares ( SCOXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.17%
• Schwab U.S. Treasury Money Fund – Investor Shares ( SNSXX ) 
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.02%
• Schwab U.S. Treasury Money Fund – Ultra Shares ( SUTXX )

Municipal Money Funds³ (Tax-Exempt)

Municipal money funds 3  (tax-exempt).

These funds invest in short-term municipal money market securities issued by states, local governments, and other municipal agencies.

• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5
• Schwab Municipal Money Fund - Investor Shares ( SWTXX ) 
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.44%
• Schwab Municipal Money Fund - Ultra Shares ( SWOXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.59%
• Schwab California Municipal Money Fund – Investor Shares ( SWKXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.08%
• Schwab California Municipal Money Fund – Ultra Shares ( SCAXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.22%
• Schwab New York Municipal Money Fund – Investor Shares ( SWYXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.40%
• Schwab New York Municipal Money Fund – Ultra Shares ( SNYXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.55%
• Schwab AMT Tax-Free Money Fund – Investor Shares ( SWWXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.42%
• Schwab AMT Tax-Free Money Fund – Ultra Shares ( SCTXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4, 5 3.57%

Variable Share Price Money Funds (Taxable)

Designed primarily for institutional investors. This fund invests in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper.

• Schwab Variable Share Price Money Fund™ – Ultra Shares ( SVUXX )
• 7-day yield (with waivers) as of 12:00 AM EDT 04/02/2024 4 5.31%
• Eligible Investors 3 Retail/Institutional 

The Variable Share Price Money Fund is a prime taxable money fund intended for institutional accounts.

Want to learn more?

Distributions

Schwab Money Funds pay dividends on the 15th of each month (or on the next business day, if the 15th is not a business day), except that in December dividends are paid on the last business day of the month.

Schwab Funds ® Monthly Distribution Schedule

Explore the details of Schwab Money Funds and Schwab Money Funds Commentary

Schwab Sweep Money Funds

Schwab has eliminated sweep money market funds as a cash feature for most new and existing accounts. Limited accounts and account types may be eligible to have a money market fund as the designated cash feature. More complete information about all of Schwab’s available cash features can be found in the  Cash Features Disclosure Statement .

Who can buy what funds?

• Retail Investors can invest in retail money market funds, which are defined as funds with policies and procedures that limit beneficial ownership to those investors deemed as "natural persons."
• Institutional Investors are eligible to invest in institutional money market funds with a variable net asset value (VNAV). Retail Investors may also choose to invest in these funds.
• Both Retail and Institutional Investors are eligible to invest in government money market funds.
• Designed to provide a convenient way to access potentially higher yields on cash
• Most have no investment minimums
• No transaction fees
• Solutions for both retail and institutional account types
• Extensive credit research and professional money management

Money market funds can be bought and sold in most brokerage and retirement accounts and are treated similarly to how other mutual funds are traded.

Prime Money Market Funds primarily invest in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Prime MMFs are considered retail money funds and are only available to natural persons.

Government and Treasury Money Market Funds primarily invest in short-term U.S. government debt securities. Treasury money market funds typically limit their holdings to only U.S. Treasury obligations or repurchase agreements collateralized by U.S. Treasury securities. Government and Treasury MMFs are available to all investors.

Municipal Money Market Funds  primarily invest in short-term municipal money market securities issued by states, local governments, and other municipal agencies. Municipal MMFs pay interest that is generally exempt from federal income tax. Municipal MMFs are considered retail money funds and are only available to natural persons.

Variable Share Price Prime Money Market Funds are designed for institutional investors but are available to all investors. These funds invest in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Daily share price (net asset value, NAV) will fluctuate.

The main differences between the types of money market funds are what each fund is allowed to invest in (i.e., the investible universe), and the corresponding regulatory rules applicable to each sector, which can affect the yield the portfolio generates. A prime money fund invests primarily in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Government and Treasury funds invest primarily in short-term U.S. government debt securities. Treasury money market funds typically limit their holdings to only U.S. Treasury obligations or repurchase agreements collateralized by U.S. Treasury securities. Municipal money market funds invest primarily in short-term, municipal money market securities issued by states, local governments, and other municipal agencies. They pay interest that is generally exempt from federal income tax. Go here for a list of current money market fund options and yields.

Accounts of Charles Schwab & Co., Inc. are insured by SIPC for securities and cash in the event of broker-dealer failure. The Schwab Money Funds are protected as securities by SIPC. Below is a link to information that can be shared with the client at schwab.com.

Additional information on SIPC:  SIPC ® Account Protection: Charles Schwab: Asset Protection

Schwab Money Funds are quoted with a 7-day yield. A money fund's 7-day yield fluctuates based on several factors, including the current interest rate environment. Go here for a list of current money market fund options and 7-day yields.

Money market fund yields can be affected by multiple variables that may be sector-specific, including supply/demand dynamics, regulatory requirements, and eligibility rules. For more information, go here to see Schwab's current money market fund options and yields.

Yes. Yields often fluctuate based on several factors, including the current interest rate environment and the fund's underlying holdings. Go here for a list of current money market fund options and yields.

The 7-Day Yield represents the annualized fund yield based on the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers. Absent such waivers, the fund's yield would have been lower.

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Best money market funds in April 2024

Farran Powell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Stephanie Steinberg

Updated 5:49 p.m. UTC April 2, 2024

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Investments like certificates of deposit and high-yield savings accounts are garnering attention as a way for investors to keep cash safe while earning consistent income.

But money market funds are a viable alternative to CDs and savings accounts. Known for their stability and modest yet steady income streams, money market funds can serve as a haven during economic uncertainty.

To help investors identify the best money market funds in 2024, our team ranked the universe of options based on stringent criteria, including but not limited to the fund’s assets under management, expense ratios, minimum required investment and track record.

Best money market funds

Vanguard federal money market fund (vmfxx), vanguard treasury money market fund (vusxx), schwab value advantage money fund – investor shares (swvxx), schwab treasury obligations money fund – investor shares (snoxx), fidelity money market fund (sprxx), fidelity government money market fund (spaxx).

Expense ratio

Total assets, what you should know.

VMFXX is a straightforward example of a money market fund. Considered one of the most conservative funds in Vanguard’s lineup, VMFXX’s portfolio is almost entirely invested in cash, U.S. government bonds or repurchase agreements collateralized by U.S. government bonds, all of which have short-term maturities. The fund’s yield fluctuates with prevailing interest rates. Like most money market funds, VMFXX seeks to maintain a stable net asset value per share of $1.

Pros and cons

• No purchase, redemption or 12b-1 fee.
• A low expense ratio of 0.11%.
• A high AUM and a long track record dating back to July 1981.
• Requires a $3,000 minimum investment.
• Yields will fluctuate with interest rate changes.
• Historically lower returns compared to stocks and bonds.

More details

• Minimum investment: $3,000.
• Fund 10-year annualized return as of April 1: 1.34%.

VUSXX is an example of a Treasury money market fund. Currently, at least 80% of this fund is required to be held in Treasury bills or repurchase agreements fully collateralized by Treasury securities. Compared to other assets, Treasurys are considered very low-risk due to their excellent credit quality and short maturity, which virtually immunizes them from default and interest rate risk.

• A low expense ratio of 0.09%.
• A high AUM and a long track record dating back to December 1992.
• Fund 10-year annualized return as of April 1: 1.33%.

SWVXX provides the usual combination of stability and consistent income by tracking a portfolio of high-quality, short-term investments from both U.S. and foreign issuers. As a prime money market fund, SWVXX has the ability to hold corporate fixed-income securities, such as commercial papers, in addition to the usual Treasury repurchase agreements and CDs.

• No sales loads or 12b-1 fees.
• No minimum required investment.
• High total assets and a long track record dating back to April 1992.
• Charges a higher 0.34% expense ratio.
• Minimum investment: $0.
• Fund 10-year annualized return as of April 1: 1.32%.

As a government money market fund, SNOXX only invests in securities issued by the U.S. government or repurchase agreements collateralized by such investments. As a result, the fund has a slightly lower default risk than a prime money market fund like SWVXX. The downside is a lower seven-day yield in exchange for this reduced risk. Once again, as the federal fund rate changes, this yield will also change in lockstep.

• Better credit quality compared to prime money market funds.
• Yields fluctuate with interest rate changes and are lower than prime money market funds.
• Fund 10-year annualized return as of April 1: 1.18%.

The fund’s overall portfolio total assets, which includes all other share classes of the fund — such as institutional shares — sits at $107.5 billion, having accrued steadily since the fund’s debut in January 1989. The fund’s portfolio is typical of a prime money market fund, split between U.S. Treasury and government agency repurchase agreements, commercial papers from financial sector companies and CDs.

• No transaction fees or 12b-1 fees.
• High AUM and a long track record dating back to January 1989.
• Charges a higher 0.42% expense ratio.
• Fund 10-year annualized return as of April 1: 1.30%.

Investors looking to avoid commercial paper from corporations in their money market fund can consider SPAXX, which has been around since February 1990. As a government money market fund, SPAXX’s portfolio consists mostly of U.S. government repurchase agreements, agency-issued floating rate and fixed-rate securities with a short maturity and high credit quality. It also has a small allocation to U.S. Treasury bills and Treasury coupons.

• No transaction fees or 12b-1 fee.
• Yields will fluctuate with interest rate changes and are lower compared to prime money market funds.
• Fund 10-year annualized return as of April 1: 1.14%.

Compare the best money market funds

Methodology

Our ranking of the top money market funds was created by applying a screen of several “must-have” metrics:

• AUM: All money market funds on this list have accrued a minimum AUM of at least $5 billion for their respective share class.
• Share class: All money market funds on this list represent share classes open to retail investors, not institutional investors.
• Minimum investment: To qualify for this ranking, a money market fund must have a minimum investment requirement of $3,000 or less.
• Type: This list only ranks government, prime and Treasury money market funds, with municipal money market funds excluded.
• Expense ratios: All money market funds on this list must have a 0.5% or less net expense ratio.
• Track record: A money market fund must have at least a 10-year performance history to be eligible for this list.

An experienced fund analyst selected the funds above, but they may not be right for your portfolio. Before purchasing any of these funds, do plenty of research to ensure they align with your financial goals and risk tolerance.

Why other funds didn’t make the cut

We began by filtering out money market funds that charge an expense ratio of 0.5% or higher. Given the long-term expected return of these funds tends to be low, minimizing fees can help investors keep more money in their pockets.

Next, we filtered out funds with less than a 10-year performance history and lower than $5 billion in AUM. This helped us identify established funds from large providers with economies of scale and a long track record of performance.

We also restricted our rankings to government, Treasury and prime money market funds. This meant excluding municipal money market funds. While these tax-exempt funds may be advantageous for investors in a higher income tax bracket, their yields tend to be lower, making them less suitable for the average investor.

We also filtered out money market funds only accessible to institutional investors and the institutional share classes of some money market funds. These usually require a large minimum investment, which makes them far less accessible to retail investors.

Finally, to ensure accessibility, we set a limit of $3,000 for the minimum investment a money market fund can initially require. This filtered out money market funds with high minimum investment requirements, making the rankings more accessible to beginner investors with smaller accounts.

Final verdict

The options for money market funds are vast. Still, most investors would do well sticking to funds from established providers with high AUM, low expense ratios, small or no minimum investments, and a long track record of stable performance.

Our pick for the best money market fund overall is Vanguard Federal Money Market Fund (VMFXX), thanks to a combination of historically consistent performance, excellent current yields, low expense ratios and the backing of a reputable, established firm in the form of Vanguard . 

What is a money market mutual fund?

Money market mutual funds are designed to provide greater safety of principal while paying out consistent income at prevailing interest rates. They can come in four types: government, prime, Treasury or municipal, also known as tax-exempt. 

They primarily invest in short-term, high-quality fixed-income securities such as Treasury bills, commercial paper, CDs and repurchase agreements. These instruments tend to have a low risk of default and low-interest rate sensitivity, which allows the money market fund to maintain a stable net asset value of $1 per share. 

The interest paid out by these underlying instruments is collected by the money market fund and distributed periodically to investors as income. Many investors use money market funds as a way to park cash in a portfolio for safety and some income potential. 

How do money market funds work

Money market funds work by pooling the capital of numerous investors together and investing it in a portfolio of fixed-income securities selected for three traits: high credit quality, short maturity, and good liquidity. This usually includes Treasury bills, commercial paper, CDs and repurchase agreements, but the exact composition of a money market fund will depend on its type. 

The underlying portfolio of securities in a money market fund helps it achieve a dual objective. The first is maintaining a stable net asset value per share of a dollar, regardless of market conditions. This eliminates volatility for the money market fund and makes it attractive to investors looking for safety.

The second objective is regular income. Distributions come from the interest income generated by the money market fund’s underlying portfolio. In general, the level of income will fluctuate in lockstep with prevailing interest rates. Investors will receive income distributions periodically, usually monthly.

Frequently asked questions (FAQs)

Money market funds are not insured by the Federal Deposit Insurance Corp. The FDIC only insures certain types of bank accounts and products — such as checking and savings accounts, money market accounts and CDs — up to a certain limit.

The FDIC does not insure investment products, which includes money market funds. Therefore, it is possible to lose money when investing in a money market fund, though it is generally considered a very low-risk investment.

All investments carry risks, but some are safer than others regarding the risk of principal loss. In general, money market funds are considered safer investments than other types of funds, such as stock or bond funds , thanks to their holdings, which tend to be high-quality, short-term fixed-income investments with excellent liquidity.

This makes money market funds more suitable for investors looking to preserve capital since they don’t incur the same volatility as stock and bond funds. However, “safe” does not mean “risk-free.”

There is always a degree of risk involved with any investment, including money market funds. As noted, money market funds are not FDIC insured, which makes them less safe than a savings account or certificate of deposit.

Recessions tend to affect investments negatively, but money market funds are usually resilient due to the short-term and high-quality nature of the securities they hold and the regulatory reforms implemented in 2016 to further improve their safety.

While they are not entirely immune to the effects of a recession, they are designed to maintain a stable net asset value of $1 per share, even during economic downturns. Historically, there have been a few instances when a money market fund “broke the buck,” with its net asset value per share plunging below $1.

The most notable instance of this was during the 2008 financial crisis when the Reserve Primary Fund “broke the buck” after the failure of Lehman Brothers. But even then, stock market investors experienced more substantial losses in comparison.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Tony Dong is a freelance financial writer with bylines in U.S. News and World Report, the NYSE, the Nasdaq, The Motley Fool and Benzinga. He lives in Vancouver, Canada and is an avid watch collector.

Farran Powell is the lead editor of investing at USA TODAY Blueprint. She was previously the assistant managing editor of investing at U.S. News and World Report. Her work has appeared in numerous publications including TheStreet, Mansion Global, CNN, CNN Money, DNAInfo, Yahoo! Finance, MSN Money and the New York Daily News. She holds a BSc from the London School of Economics and an MA from the University of Texas at Austin. You can follow her on Twitter at @farranpowell.

Stephanie Steinberg has been a journalist for over a decade. She has served as a health and money editor at U.S. News and World Report, covering personal finance, financial advisors, credit cards, retirement, investing, health and wellness and more. She founded The Detroit Writing Room and New York Writing Room to offer writing coaching and workshops for entrepreneurs, professionals and writers of all experience levels. Her work has been published in The New York Times, USA TODAY, Boston Globe, CNN.com, Huffington Post, and Detroit publications.

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What Is a Money Market Mutual Fund?

Understanding money market mutual funds.

• Operational Details of MMFs
• Guide to Mutual Funds

Introduction To Money Market Mutual Funds

Investors interested in the money market can access it most easily through money market mutual funds. However, smaller investors still need a rudimentary understanding of the Treasury bills , commercial paper, bankers' acceptances, repurchase agreements, and certificates of deposit (CDs) that make up the bulk of money market mutual fund portfolios. In this article, we show you how money market funds work and how they can benefit you.

Key Takeaways

• A money market mutual fund is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents.
• Though not exactly as safe as cash, money market funds are considered extremely low risk on the investment spectrum and thus carry close to the risk-free rate of return.
• A money market fund generates income (taxable or tax-free, depending on its portfolio) but little capital appreciation.
• Money market funds invest in a variety of similar instruments, while money market accounts exist in a single offering held at a bank or credit union and insured by the FDIC.  

An important delineation to understand is the difference between money market funds and money market accounts.

Money Market Funds vs. Money Market Accounts

Unlike cash and even typical CDs , money market mutual funds are not insured by the Federal Deposit Insurance Corporation  (FDIC). There is always a risk, though extremely small, that the investor could lose money. Put another way, the crucial difference between money market funds and money market accounts is that the former is sponsored by fund companies and carry no guarantee of principal. Money market accounts, on the other hand, are interest-earning savings accounts that offer limited transaction privileges and are offered by financial institutions insured up to a certain limit.  

Money market accounts usually pay a higher interest rate than a passbook savings account but generally a slightly lower interest rate than a CD or the total return of a money market fund. Money market accounts also tend to restrict the accessibility of account balances through check writing while money market fund withdrawals are typically available on demand. 

Money market funds are often called "money funds" or "money market  mutual funds " and should, therefore, not be confused with the similar-sounding money market deposit accounts offered by banks in the United States. The major difference is that money market funds are assets held by a brokerage , or possibly a bank, whereas money market deposit accounts are liabilities for a bank. The bank can invest the money at its discretion and potentially in (riskier) investments other than money market securities. In a money market fund, investors are buying securities, and the brokerage is holding them. In a money market deposit account, investors are depositing money in the bank, and the bank is investing that money for itself and paying the investor the agreed-upon return.

The Purpose of Money Market Mutual Funds for Investors

There are three instances when money market mutual funds, because of their liquidity , are particularly suitable investments.

• Money market mutual funds offer a convenient parking place for cash reserves when an investor is not quite ready to invest or is anticipating a near-term cash outlay for a non-investment purpose. Money market mutual funds offer ultimate safety and liquidity. This means that investors will have an expected sum of cash at the very moment that they need it.
• An investor holding a basket of mutual funds from a single fund company may occasionally want to transfer assets from one fund to another. If, however, the investor wants to sell a fund before deciding on another fund to purchase, a money market mutual fund offered by the same fund company may be a wise place to park the sale proceeds. Then, at the appropriate time, the investor may exchange their money market mutual fund holdings for shares of the other funds in the fund family.
• To benefit their clients, brokerage firms regularly use money market mutual funds to provide cash management services. Putting a client's dormant cash into money market mutual funds will earn the client an extra percentage point (or two) in annual returns above those earned by other possible investments.

Operational Details of Money Market Mutual Funds

Money market mutual funds are designed to offer features suited to the needs of small investors. Minimum initial investments generally range from $500 to $5,000.

Investors can purchase shares in money market mutual funds directly from brokerage companies or mutual fund firms, just as they would purchase shares in a stock or equity mutual fund . As investment advisors, some banks also sell money market funds, and some even have their own proprietary funds that offer money market investment opportunities.

Money market mutual funds also offer some simplified withdrawal features that are more generally associated with bank or trust accounts. For example, money market funds allow investors to withdraw assets by writing checks, with a typical minimum amount of $500 per check. If the investor does not want to write a check as a means of withdrawing funds, they can easily redeem shares by requesting payment by mail or by remittance via  wire transfer to their bank account.

Categories of Money Market Mutual Funds

Money market mutual funds may contain a specific type of money market security or a combination of securities across a wide spectrum:

• One particular type of fund limits its asset purchases to U.S. Treasury securities.
• Another class of money market funds purchases both U.S. government securities and investments in various government-sponsored enterprises (GSEs).
• The third and largest class of money market mutual funds invests in a variety of money market instruments that offer the highest degree of security.

Another important categorization for money market mutual funds relates to their taxable or tax-exempt status. Taxable funds invest in securities such as Treasury bills and commercial paper , the interest income on which is subject to federal taxation. Tax-exempt funds invest exclusively in securities issued by state and local governments and, therefore, are exempt from federal taxation. Tax-exempt funds appeal to investors in higher federal tax brackets who seek tax savings on the interest income generated by their portfolios.

Tax-exempt money market mutual funds can offer a triple-whammy tax reprieve for some investors. Some tax-exempt funds purchase only securities issued by governments within a particular state. If an investor can find such a fund for their home state, their interest income may be exempt from federal, state, and perhaps even local income taxes.

Cash vs. Money Market Funds

Most analysts treat money market accounts like cash. When calculating  financial ratios , money market securities and fund balances are added to cash balances. This is because the financial instruments that make up money market funds are considered highly liquid, meaning that they can be converted into cash quickly. In addition to being highly liquid, money market funds exhibit less volatility and are less prone to market fluctuations and interest rate risk than other investments. 

The target par value of a share of most money market mutual funds.

Money market funds seek stability and security with the goal of never losing money and keeping  net asset value  (NAV) at $1. This one-buck NAV baseline gives rise to the phrase break the buck , meaning that if the value falls below the $1 NAV level, some of the original investment is gone, and investors will lose money.

This only happens very rarely, but because money market funds are not FDIC-insured, they can lose money. For instance, at the height of the 2008 market crash, several money market funds traded for less than $1 per share. The day after Lehman Brothers filed for bankruptcy, one money market fund fell to 97 cents after writing off the debt it owned that was issued by Lehman. This created the potential for a bank run in money markets as there was fear that more funds would break the buck.

Special Considerations: Money Market Funds

Just as equity and fixed-income mutual funds have greatly simplified the world of investing, money market mutual funds have made money market investing accessible to individual retail investors. Money market mutual funds are among the safest and most liquid generally available  financial instruments . Moreover, money market funds offer modest initial investment requirements and provide simple procedures for withdrawing funds by check or transfer to a bank account. Finally, if they choose carefully , purchasers of certain tax-exempt money market funds may also enjoy relief from federal, state, and even local taxes.

Federal Deposit Insurance Corporation. " Insured or Not Insured? "

Ozgur Akaya, Mark D. Griffiths, Drew B. Winters. " Reserve Primary: Fools Rush In Where Wise Men Fear to Tread ," Page 15. Journal of Investment Management, 2015.

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Money market refers to the investment in short term because the assets which are bought and sold with maturities within a year. Normally, they can be converted into cash easily. The examples of money market’s instruments are bank deposits, certificates of deposit, interbank loans, money market mutual funds, commercial paper, treasury bills, and securities lending and repurchase agreements (repos). (Dodd, R., 2012). Interbank loans are loans between banks which are not secured by collateral. Commercial paper is a promissory note as an unsecured debt that issued by highly rated banks and some large non-financial corporations. Some safer investments in the money market are treasury bills and repurchase agreements (repos). T-bills are securities issued by the government with maturities of less than a year as it is covered by securities laws while Repos are usually less than two weeks and often overnight. Besides that, money market mutual fund (MMMFs) is another instrument in money market which are securities offered by companies that invest in other money market instruments. Furthermore, asset-backed commercial paper (ABCP) is another money market instrument which is safer compare to the ordinary commercial papers because it is secured by the underlying assets. During financial crisis, these money market instruments are greatly affected and show a big downturn. They are helped by the country treasury and the federal reserved. These agencies created special lending for them to overcome the crisis. Today, some of the money market like ABCP and REPO has shrunk dramatically. (Dodd, R., 2012). The interest rates and calendar-time effects do affect both the MMFs and bank deposits cash flow for either the institutional or retail investors. (Kotomin,V., et al., 2014) The research found out that institutional money fund investors appear to take advantage of arbitrage opportunities created by the MMFs using the amortized cost valuation technique. A key test variable is used which call ‘Spread’. It is used to measure the direction and magnitude of changes in short-term interest rates and thus capture potential arbitrage opportunities in the money markets arising due to recent changes in interest rates. When Spread is positive, investors would earn a higher rate of return in the alternative investment but when Spread is negative, investors will earn a higher return in MMFs. This shows Spread and MMF flows have a negative relation. (Kotomin,V., et al., 2014) The research on calendar-time effect found out that calendar time effects make money market investors are willing to forego some return to strategically time their cash flows to meet calendar-based cash obligations. Both retail and institutional MMFs moved cash out of MMFs before calendar break points associated with cash obligations and move back into MMFs following the break points. The cash which taken out from the MMFs tend to flow into bank demand deposits. (Kotomin,V., et al., 2014). The average maturity of the fund will be shortened in order to increase the yield faster if the interest rates are expected to increase and vice versa. Therefore, managers who possessed this ability to anticipate forthcoming movements in the market are able to address the adverse impact and exploit the opportunities available. (Mansur, I., Odusami, B., & Nasseh, A, 2011) The data being used in this study are weekly 90-day T-bill yields and weekly one-month AA financial CP rates. Besides that, they also obtained the weekly weighted average maturity (WAM) on all taxable MMMFs. The results show that weekly changes in WAM have a negative correlation with changes in CP yields and there is no relationship between changes in WAM and changes in T-bill yields. Then, further investigation is made to find out the relationship between interest rates and WAM by applying Granger causality tests. The results showed that the T-bill market is highly efficient. This is because investors cannot gain any deeper understanding by analyzing the maturity structure of MMMFs for information that is not reflected in the T-bill rates.(Mansur, I., Odusami, B., &Nasseh, A, 2011). There are two theories for bank run their subject of academic and regulatory which are Diamond and Dybvig and the second theory is run in rationally driven by information. The prime money fund is category to give the explanation about covariates of the money fund run, because this category is by far and is most effective by the money fund crisis. The institutional investor moved their money in the same time or later one day in or out of prime money market, especially in the complex within same fund. Besides that, we also find that investment is sensitive no easy to liquidity the money fund holding; correlated flow less happen money fund with greater level of security mutual period is short ‘term. In the other hand, the money fund runs at ‘deep pocket backing’ ,this is indicate with investor infer the fund is guaranteed by their management company and the institution investor, for the most part, moved their money into the U.S government . According to Fecht, Gr??ner and Hartmann (2007) banks contribute to inter-regional risk sharing. They recommend that the risk sharing depends on the size of the interbank market through secured and unsecured interbank trading. Using LIBOR for some currencies, Kotomin et al. (2008) mentioned the liquidity preference at the end of the year or trimester is the main factor that drives the interest rates’ behavior on short term. Cerrato et al. (2010) discovered that the Euro zone monetary policy is transmitted into CEE interest rates by the framework of the influence of global monetary shocks. Besides, they discovered the presence of structural breaks at the beginning of financial crisis for almost all rates which present long memory. The long run equilibrium relationship between the overnight rates and the corresponding 1 month and 3 month rate was found. From Gregory-Hansen test, these are valid in the presence of a structural break in integrating relationship between the interbank money markets. The risk-taking behaviour of money market funds during the financial crisis of 2007-2010 was examined by Kacperczyk, M. and Schnabl, P. (December 2012). Starting at August 2007, money funds experienced an extension in their risk-taking opportunities. The analysis shows that ‘fund flows are extremely responsive to past returned and one-standard-deviation increase in fund returns raises annualized fund assets by 46%.’ which makes money market funds had strong incentives to take on risk. (Kacperczyk, M. and Schnabl, P.) The characteristic that predicts risk taking is if fund sponsors has interests in businesses (business concerns) who will reduce risk and a fund sponsor’s financial strength who found that greater financial strength increases risk taking. Other (unobserved) sponsor characteristics, like quality of risk management, risk aversion, investment style, or access to private information would directly affect risk taking. In September 2008, the government introduced unlimited deposit insurance, which effectively replaced the sponsors’ role in providing support that makes the differences in risk taking become smaller. Money market funds lack safety relative to other safe instruments because when the opportunity increases the incentives to take on risk is high but they are vulnerable to runs once the risk materializes. The demand deposit contracts in open-end mutual fund are same with the bank which can cause the investor withdraw the money from time to time. The higher return was provided by evidence that pursuit to motivate the investors reacting to bad by withdrawing the money. The fund can outperform from the other fund as long as liquidity in the higher market by investing illiquid asset. When investing less liquid asset, the narrow structure of money market fund and make them weak to run. The study also included the risks which involve in investment in illiquid assets when the open-ended structure is involved. Besides that, it was present the run are possible in the money market. The financial intermediaries were given to reform the regulation of the money market fund in U.S and Europe to archive the target for stability the money market fund. Before financial crisis, there only have limited information about asset composition of German money market fund was able to the public and not standardized. The insurance provide with a fund issuer might play on the important role in the stability of money market fund. Money market also is a set large remain stable in the U.S where an implicit insurance is provided. The sterling overnight money market is important to implement the monetary policy. The development of sterling overnight markets can be sum up into an increased sensitivity of bank liquidity risk and credit risk, introduction of the ‘floor’ system; reduced volatility in overnight interest rates after introducing floor’ system, a drop and growth in unsecured and secured money market activity respectively, introduction of international prudential liquidity regulations andchanging incentives to arbitrage overnight interest rates.(Jackson, C., &Sim, M, 2013). The Bank has introduced a ‘floor system, whereby all reserves account balances were recompense at Bank Rate. Banks preferred to transact among themselves instead of using the money market to manage liquidity which shows that they are more sensitive to credit and liquidity risk. The unsecured interbank trading has dropped drastically after the introduction of the floor system and increase in reserves. After the reinforcement of prudential liquidity regulation, banks have dramatically reduced their use of wholesale unsecured market. They use a longer-term funding combine and hold reserves at the central bank to manage liquidity needs (Jackson, C., &Sim, M, 2013). The markets for federal funds and Eurodollars are the two core components of the dollar money market which relate for both financial analysis and the execution of monetary policy. The degree of integration of the federal funds and the Eurodollar markets is also important for the implement and transmission of monetary policy. This paper provides a detailed analysis of the extent of integration of the markets for federal funds and for Eurodollar deposit by using a new set of transactional-level data which gained from one of the largest U.S based dollar markets brokers and detailed empirical modelling of the daily and intra-day behaviour of federal fund and Eurodollar interest spread. Besides that, this paper also significant the liquidity effects of money market. The higher money market trading volume lowers the volatility of spreads which keeping federal funds and Eurodollar yields more close. Furthermore, daily news on money market conditions as captured by results of morning Federal Reserve open market auctions are absorbed quickly within a couple of hours into yield spreads was shown. Close integration of federal funds and Eurodollar trading has two immediate implications which are from the standpoint of financial analysis and the standpoint of policy design and analysis of the transmission of monetary policy.

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Essays on Money Market Fund

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Money market funds are offering yields that top 5%. Before you invest, here’s what you need to know.

Since interest rates have risen in the past two years, money market funds have become more appealing to investors. Money market funds, which are invested in short-term, safe securities, are mutual funds that closely track the Federal Reserve’s benchmark rate. With interest rates at a more than 20-year high, some money market funds offer yields of around 5%. 

Before you invest, let’s break down what you need to know to determine whether they’re right for you.

Interactive Brokers

How money market funds work  

Money market mutual funds have been around since the 1970s, but there’s been a resurgence of interest in them due to the Silicon Valley Bank failure last year and the Fed’s rate hikes. These funds are offered by brokerages and are invested in low-risk, short-term assets, such as Treasury securities, corporate and municipal bonds, and certificates of deposit (CDs). Interest is typically paid out monthly.

Yields on money market funds tend to fluctuate with changes in the federal funds rate. They’re very liquid investments, making them a good place to park money you may need to access again quickly.

Are money market funds safe?

Although money market funds aren’t covered by Federal Deposit Insurance Corp. (FDIC) insurance because they’re mutual funds, not bank accounts, they’re still safe. (Note that money market funds are different than money market accounts, which are a type of deposit account offered by banks and credit unions.)

Why? Money market funds must have a net asset value (NAV) of $1 per share. 

“Money market funds maintain a net asset value or closing price of [a] dollar per share. That’s the whole goal of the money market fund. You’re not going to really see any price fluctuation and that’s what creates the safety feature, says Sophoan Prak, Certified Financial Planner (CFP) and Financial Advisor at Vanguard. “There could be, in history, money market funds that have broken the buck, but that’s very rare.”

In other words, money market funds aren’t volatile investments, which means you’re unlikely to lose money by investing. 

If you do invest in a money market fund, make sure to opt for a brokerage that has Securities Investor Protection Corporation (SIPC) insurance. SIPC insurance won’t protect you if the money market fund breaks the buck, but it will protect investments up to $500,000 in the event of a brokerage failure.

Types of money market funds  

There are a few different types of money market funds; some invest in corporate debt, others in government-issued bonds, and some in both.

• Municipal: these funds are exempt from federal tax because they’re invested in municipal bonds, which are debt issued by cities and states. Generally, they offer lower yields than other types of money market funds.
• Government: these funds are invested in Treasurys and other federal government securities.  
• Prime: these funds are invested in government securities, CDs, corporate debt, and more.

Who are money market funds right for?

Anyone can invest in a money market fund, but it’s best for money you plan to use in the near future, such as a vacation you want to take a year from now. 

“Money market [funds] are really intended for short-term needs, such as an emergency fund,” says Prak. “If you actually need the money to pay your bills or even if you need the money within the next one or two years, that’s when money market funds would be an appropriate investment to use as an alternative to keeping your money at a local bank or a savings account.”

While some money market funds boast yields well above 4%, you don’t want to put too much money into them, especially for long-term investing. Money market yields usually don’t outpace inflation. And with the Fed planning to cut rates later this year, yields will likely decline. 

Pros and cons of money market funds

Money market mutual funds carry great benefits for many investors, but they’re not going to be the best fit for everyone. Here are some key things to remember:

• Principal protection. You can protect your initial investment and possibly earn a decent return, depending on interest rates. 
• Some offer tax advantages. By investing in municipal money market funds, you can avoid paying federal tax on your investment.
• Liquidity. You can typically access your cash within a few business days. 
• Yield may not beat inflation. If you want an investment that outpaces inflation, try stocks and bonds instead of money market funds.
• Lack of insurance. You won’t receive FDIC or National Credit Union Administration (NCUA) insurance with a money market mutual fund.

The takeaway  

Money market mutual funds can be a solid option if you want to earn a decent yield but still want to access your cash whenever you need it. This low-risk investment probably isn’t the best place to stash your money in the long run, but it can be a good place to store an emergency fund or savings you may need to tap immediately.

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260 Money Topics to Write About & Essay Examples

Looking for a topic about money? Money won’t leave anyone indifferent! There are lots of money essay topics for students to explore.

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You might want to focus on the issue of money management or elaborate on why money is so important nowadays. Other exciting topics for a money essay are the relation between money and love, the role of money in education, etc. Below you’ll find a list of money topics to write about! These ideas can also be used for discussions and presentations. Money essay examples are a nice bonus to inspire you even more!

• Can Money Buy You Happiness? First of all, given that happiness is related to the satisfaction of personal needs, there is also a need to consider the essential need of human life such as housing, medicine, and food.
• I Don’t Believe Money Can Buy Happiness This shows that as much as money is essential in acquisition and satisfaction of our needs, it does not guarantee our happiness by its own and other aspects of life have to be incorporated to […]
• Connection Between Money and Happiness Critical analysis of money-happiness relationship shows that socioeconomic factors determine the happiness of an individual; therefore, it is quite unsatisfactory to attribute money as the only factor and determinant of happiness.
• Money as a Form of Motivation in the Work Place This then shows that money can and is used as a motivational factor in the work place so that employees can strive to give their best and their all at the end of the day.
• Money: Good or Evil? Comparing & Contrasting While there are those amongst us who subscribe to the school of though that “money is the source of all evil”, others are of the opinion that money can buy you anything, literary.
• Money and Modern Life The rich and the powerful are at the top while the poor and helpless are at the bottom, the rest lie in-between.
• Should America Keep Paper Money It is possible to begin the discussion of the need for keeping paper currency from referring to the rights of any people.
• Does Money Buy Happiness? Billions of people in all parts of the world sacrifice their ambitions and subconscious tensions on the altar of profitability and higher incomes. Yet, the opportunity costs of pursuing more money can be extremely high.
• Strategies to Save and Protect Money Thus, the main points of expenditure will be clearly marked, which will help to exclude the purchase of unnecessary goods and services.
• Money, Happiness and Relationship Between Them The research conducted in the different countries during which people were asked how satisfied they were with their lives clearly indicated the existence of a non-linear relationship between the amount of money and the size […]
• The Global Media Is All About Money and Profit Making It is noteworthy that the advertisement are presented through the media, which confirms the assertion that global media is all about money and profit making. The media firms control the information passed to the public […]
• Anti-Money Laundering and Hawala System in Dubai To prevent money launders and agents, most countries enacted the anti-money laundering acts with the goal of tracking and prosecuting offenders.
• Electronic Money: Challenges and Solutions First of all, it should be pointed out that money is any type of phenomenon which is conventionally accepted as a universal carrier of value, or “any generally accepted means of payment which is allowed […]
• Money Saving Methods for College Students A budget is one of the methods that a college student can use to save money. In the budget, one should indicate how much to save and the means of saving the money.
• Discussion: Can Money Buy Happiness? Reason Two: Second, people are psychologically predisposed to wanting more than they have, so the richer people are, the less feasible it is to satisfy their demands.
• Money or Family Values First? Which Way to Go As such, family values becomes the epicenter of shaping individual behavior and actions towards the attainment of a certain good, while money assumes the position of facilitating the attainment of a certain good such as […]
• Time Value of Money: Importance of Calculating Due to fluctuations in economies, all organizations need to take into consideration concepts of the time value of money in any investment venture.
• Prices Rise When the Government Prints too Much Money Makinen notes that an increase in the supply of money in an economy relative to the output in the economy could lead to inflationary pressure on prices of goods and services in the economy.
• Money Laundering Through Cryptocurrencies This study will try to critique the approaches used by countries to address the aspect of money laundering activities and the risks posed by digital currencies.
• Paper Money and Its Role Throughout History The adoption of the paper money was considered to be beneficial for both the wealth of the country and the individual businessmen.
• Money and Its Value Throughout the World History What is important is the value that people place on whatever unit they refer to as amoney.’ Money acts as a medium of exchange and an element of measurement of the value of goods and […]
• “From Empire to Chimerica” in “The Ascent of Money” In the chapter “From Empire to Chimerica,” Niall Ferguson traces back the history of the Western financial rise and suggests that nowadays it is being challenged by the developing Eastern world. The hegemonic position of […]
• Money, Success, and Relation Between Them In particular, the modern generation attaches so much importance to money in the sense that success and money are presumed to be one and the same thing.
• Money: Evolution, Functions, and Characteristics It acts as medium of exchange where it is accepted by both buyers and sellers; the buyer gives money to the seller in exchange of commodities.
• Efforts to Raise Money for Charity However, the point is that charity is supposed to be for a simple act of giving and not expecting any returns from it.
• Two Attitudes Towards Money The over-dependence on money to satisfy one’s emotional needs is a negative perspective of money. The positive attitude of money is rarely practiced by people.
• Success and Money Correlation The development of the information technologies and the ongoing progress led to the reconsideration of the values and beliefs. It is significant to understand that there is no right or wrong answer for the question […]
• Change in the Value of Money According to Keynes To explain the effect of inflation on investors, Keynes delves into the history of inflation through the nineteenth century and tries to explain the complacency of investors at the beginning of the First World War […]
• Money and Banking: General Information The essay gives the definition of money and gives a brief description of the functions of money. As a store of value, money can be saved reliably and then retrieved in the future.
• Anti-Money Laundering in Al Ansari Exchange Case Study Details Company name: Al Ansari Exchange Headquarters: Dubai, United Arab Emirates Sector: Financial Services Number of employees: 2500 Annual gross revenue: UAED 440.
• Time Value of Money Compounding was done on the amount that I had lent out using the market rate over the duration of time the person held my money.
• The Relationship Between Money Supply and Inflation It is evidenced that changing the money supply through the central banks leads to a control of the inflationary situations in the same economy.
• Money Laundering: Most Effective Combat Strategies The practice of money laundering affects the economy and security of a country. Countries have directed their efforts to curb money laundering to control the downwards projections of their countries’ economies.
• Why People Should Donate Time, Money, Energy to a Particular Organization, Charity, or Cause Its vision is to have a world that is free from Alzheimer’s disease.”The Alzheimer’s Association is the leading, global voluntary health organization in Alzheimer’s care and support, and the largest private, nonprofit funder of Alzheimer’s […]
• Are Workers Motivated Mainly by Money? Related to the concept of work and why people work is the original concept developed by Karl Marx in the so-called conflict theory.
• The Lebanese-Canadian Bank’s Money Laundering The bank was later banned from using the dollar by the American treasury; this resulted in the collapse and eventual sale of the bank.L.C.B.had to pay a settlement fine of one hundred and two million […]
• Money, Happiness and Satisfaction With Life Nonetheless, the previously mentioned examples should be used to remind us that money alone is not a guarantee of happiness, satisfaction with life, and good health.
• Dreams of Avarice in Ferguson’s “The Ascent of Money” The chapter “Dreams of Avarice” of the book “The Ascent of Money” explores different stages of development of money functioning in the world by relating them to corresponding historical events.
• The Ascent of Money: A Financial History of the World The succinctness of this book lies in the critical analysis and emphasis of the financial history of money in spite of the fact it has impeded some important functions of the global economy.
• Exploring the Relationship Between Education and Money A person cannot be able to change his/her ascribed status in the society, but only through education a person is able to change his/her Socio-economic status and to some extent that of his/her family once […]
• Drugs: The Love of Money Is the Root of All Evils The political issues concerning the use of drugs consist of, but not limited to, the substances that are defined as drugs, the means of supplying and controlling their use, and how the society relates with […]
• Saving Money Using Electric or Gas Vehicles The central hypothesis of the study is that the electric car will save more money than gas ones. The main expected outcome that the study is counting on is a confirmation of the presented hypothesis […]
• Blowing Bubbles in Ferguson’s “The Ascent of Money” Moreover, the author shows the connection and similarities between the present collapse of a stock market and the Enron default along with a Mississippi Bubble of the eighteenth century that was created by John Law, […]
• Money and Happiness in Poor and Wealthy Societies Comprehending the motivations for pursuing money and happiness is the key to understanding this correlation. The Easterlin paradox summed this view by showing that income had a direct correlation with happiness.
• Giving Money to the Homeless: Is It Important? The question of whether a person should give money to a homeless person or not is a complicated one and cannot have the right answer.
• Two Attitudes Toward Money Two attitudes toward money involve negative perception of money as universal evil and positive perception of money as source of good life and prosperity.
• “College Is a Waste of Time and Money” by Bird Bird’s use of logical fallacies, like if students do not want to go to college, they should not do it until the reasons of their unwillingness are identified, proves that it is wrong to believe […]
• Sports and Money in Australia Because swimming is a well-developed kind of sports, money should be more spent on engaging new swimmers and promoting new talents to the professional sport.
• Money Laundering Scene in Police Drama “Ozark” In one of the first season’s episodes, Marty, the main character, illustrates the process of money laundering crime. In the scene, one can see that Marty is fully sane and is committing a crime voluntarily.
• Money From the Christian Perspective Work in Christian missions is a business and since it affects the relationship between the missionary and the people he is trying to reach, missionary funding is essential.
• Business Case Scenario: Missing Money in a Company A possible scenario explaining how money is missing is through the payroll department my first argument seeks to prove the payroll department as the loophole of the company’s misfortunes.
• Sports Stadiums’ Funding by Public Money The issue is controversial from an ethical point of view since not all citizens whose taxes can be spent on the construction of the stadium are interested in or fond of sports.
• Money Laundering: The Kazakhgate Case He was accused of breaking the Foreign Corrupt Practices Act of 1974 and money laundering by the U.S.attorney’s office for the Southern District of New York.
• The Ways Terrorists Raise and Move Money Moreover, the government has put into action the freezing orders and blocking of united states individuals who are presumed to have a hand in terrorist activities.
• “Money as a Weapon” System and Fiscal Triad Furthermore, the fiscal triad encompasses the procurement of products and services and the disbursement and accounting of public funding. Fiscal legislation and contracts are two key components of the “money as a weapon” system.
• The Fiscal Triad and Money as a Weapon System The reliance on the unit commanders sparked the development of the complementary strategy, “Money as a Weapon System,” which became a focal point of the Iraq and Afghanistan campaigns.
• Traditional vs. Modern Forms of Money The most significant argument for the continuing existence of traditional forms of money is the impossibility of converting all financial resources into a digital form.
• Time Value of Money: What You Should Know The time value of money is a paramount financial concept, according to which a certain amount is now worth more than the same amount in the future.
• The Concept of the Time Value of Money The concept of the time value of money refers to the financial principle noting that a fixed amount of money currently is worth more than the same amount of money in the future.
• Play Money Paper: A Report Betas of the Companies in the Portfolio It is noteworthy that in the given portfolio, the beta indices of the companies involved vary considerably.
• Integration of Business Ethics in Preventing Money Laundering Schemes The shipping information within the document seems inaccurate with the intention to launder money from the buyer. The contribution of ocean carrier in the transaction process is doubtful to a given extent.
• Where Does the Money Go? by Bittle & Johnson Therefore, the authors explain key issues of the national debt in a relatively simple language and provide their opinion on how the country got into that situation and what could be done about it. In […]
• Trade-Based Money Laundering The purpose of this paper is to research the subject of trade-based money laundering, its impact on global scene and export controls, identify types of trade finance techniques used to launder illegal money, and provide […]
• Impact of Natural Disasters on Money Markets and Investment Infusion of funds from the central bank during natural disasters results in higher process of exports as a direct result of an increase in the value of the local currency.
• The Perception of Money, Wealth, and Power: Early Renaissance vs. Nowadays In the Renaissance period, power was a questionable pursuit and could be viewed as less stable due to more frequent upheavals.
• Financial Institutions and Money Money is a store of value because it can be saved now and used to purchase se goods and services in the future.
• Researching of the Time Value of Money After receiving the loan, one of the monetary policies that would help PIIGS to stabilize is the deflation of their currency, in this case, the Euro.
• Anti-Money Laundering: Financial Action Task Force Meanwhile, given the limited access for physical assessment of state jurisdictions, it is likely that current provisions of FATF are yet to be revised in spite of pandemic travel and assessment restrictions.
• Anti-Money Laundering in the UK Jurisdiction The regime adopted in the UK is based on the provisions of “the Terrorism Act of 2000, the Proceeds of Crime Act of 2002, as well as the Money Laundering, Terrorist Financing, and Transfer of […]
• Trade-Based Money Laundering and Its Attractiveness The proliferation of the trade-based money laundering is directly related to the growing complexity of international trade systems, where new risks and vulnerabilities emerge and are seen as favorable among terrorist organizations seeking for the […]
• Money Laundering and Sanctions Regulatory Frameworks Under the provisions of OFAC, the company has violated the cybersecurity rules that might indirectly bring a significant threat to the national security or the stability of the United States economy by engaging in online […]
• Type Borrowing Money: Margin Lending In the defense of the storm financial planning firm, BOQ submitted to the authorities that in view of banking regulatory policies, storm had not contravened any of the policies and this is the reason why […]
• Lessons on Financial Planning Using Money Tree Software Financial planning remains a fundamental function among the investors in coming up with a method of using the finances presently and in the future.
• The Supply of Money in the Capitalist Economy In the capitalist economy that the world is currently based on, the supply of money plays a significant role in not only affecting salaries and prices but also the growth of the economy.
• Time Value of Money Defined and Calculations Simply put, the same value of money today is worth the same value in future. The time value of money can therefore be defined as the calculated value of the money taking into consideration various […]
• Anti Money Laundering and Financial Crime There are a number of requirements by the government on the AML procedures to be developed and adopted by the firms in the financial service in industry in an attempt to fight the illegal practice.
• Money Tree Software: Financial Planning This return is important because: It represents the reward the business stakeholders and owner of the business get in staking their money on the business currently and in the future It rewards the business creditors […]
• Money Management: Investment on Exchange-Traded Funds The essay will discuss the possibility of investing in a number of selected ETFs in connection to an investment objective of an individual.
• What Is Money Laundering and Is It Possible to Fight It Certainly and more often money involved in laundering is obtained from illegal activities and the main objective of laundering is to ‘clean’ the dirty money and give it a legitimate appearance in terms of source.
• Time Value of Money: Choosing Bank for Deposit The value of the money is determined by the rate of return that the bank will offer. The future value of the two banks is $20,000 and $22,000 for bank A and bank B respectively.
• How Money Market Mutual Funds Contributed to the 2008 Financial Crisis While how the prices of shares fell below the set $1 per share was a complex process, it became one of the greatest systemic risks posed by the MMMF to the investors and the economy […]
• Time Value of Money From an Islamic Perspective Islamic scholars say that the time value of money and the interest rates imposed on money lent are the reasons why the poor keep on getting poor and the rich richer.
• Rational Decision Making: Money on Your Mind The mind is responsible for making financial decision and it is triggered by the messages we receive on the day to day activities. Lennick and Jordan explain that, we have two systems in the brain; […]
• A Usability Test Conducted on GE Money.com.au It is common knowledge that the easier it is to access services and products on a given website the more likely users will be encouraged to come back.
• “Most Important Thing Is Money Ltd”: Vaccination Development Thus, necessary powers have been vested with the Secretary of State for Health in England, through the recommendations of the Joint Committee on Vaccinations and Immunisation to enforce such preventive steps, through necessary programs that […]
• Money Investments in the Companies and Bonds The stock volume is on the low level now, about 30, but it is connected with the crisis in the world and the additional investment may support the company and increase it. In general the […]
• Money Management in the Organization There is a much debate on the issue and several people an financial experts do analyze the historical perspectives of the Active vs Passive money management.
• How the Virus Transformed Money Spending in the US In the article featured in the New York Times, Leatherby and Geller state that the rate at which people spend their money has rapidly decreased due to the emergence of the virus in the United […]
• The Role of Money and Class Division in Society The image of modern American society tries in vain to convey the prevalence of personality over social division. Americans’ perception of financial status has been shaped for years by creating the notion of the “American […]
• Money and American Classes in 1870-1920 Wherein, the time of the stock market emergence was the time of the ongoing “carnival,” where the mystical power of money transferred to miraculous products and medicines and compelling advertisements.
• The Ascent of Money – Safe as Houses Looking from a broad historical perspective, Niall Ferguson devotes the chapter “Save as Houses” to the observation of the real estate concept transformation, describes the place of the real estate market in the economic systems […]
• The Ascent of Money – Blowing Bubbles The price for a share tells how much people rely on the cost of the company in the future. The life of a stock market represents the reflection of human moods on the price of […]
• Canada’s Role in the History of Money: The Relationship Between Ownership and Control Individuals with the predominant shares gain the directorship of the wealth production channels and as such gain control of the diversified owners.
• Why Non-Monetary Incentives Are More Significant Than Money It is important to recognize that both monetary and non-monetary incentives, otherwise known as total rewards, are offered to employees in diverse ways for purposes of attracting and motivating them to the ideals of the […]
• To Make Money or Serve the Society? However, when the issue of the corporation to serve the society arises, then it kind of compromises the main focus of the corporation, which is to make money. These have been the major causes of […]
• Money Role in Macro Economy The dollar is till now the most accepted currency in the world and this dollar fluctuation that has been caused by the worst recession in American history since the time of the Great Depression is […]
• Organizational Communication & the “Money” Aspect While the use of this information is critical for both ensuring survival of the organization and being a frontrunner in its strategies for the future, there are large boulders in use of this information effectively, […]
• Tax Money Usage on Military Spending Issue The fact that America won the Cold War and defeated the Soviets is taken as a vindication by the American leaders of the need to continue military spending.
• Money Makes You Happy: Philosophical Reasoning It is possible to give the right to the ones who think that money can buy happiness. This conclusion is not accepted by psychologists who think that wealth brings the happiness only in the moment […]
• “Who Says Money Cannot Buy Happiness” by Lee Investment is a production process for will it bring about goods and services that can be sold to the market and in the process, the owner of the business makes some profit.
• Technical Analysis as Active Money Management Method Technical analysis is the financial markets methodology that asserts the capability to foretell the probable course of security charges by the means of past market data study, principally price and volume.
• Spare Change: Giving Money to the “Undeserving Poor” To address the central theme of the article, one need to delve deeper into the psyche of giving alms and money to the poor people we meet on the street.
• The Use of Money in Business Practices Money is seen as the cause of problems and especially in the minds of emerging market respondents. Through this they can pick up groceries for the old in their neighborhood and make money from this.
• Money Laundering and Terrorist Finance However, the balance money after the sham gambling is transferred to another ordinary bank account, thereby creating a legal status for the laundered money as if it has come from gambling and will be employed […]
• City Planning. Too Much Money: Why Savings Are Bad The scenario is that the expected growth in economies where the rate of savings is high has not shown a corresponding increase in growth rate also.
• Debates in Endogenous Money: Basil Moore The value of the currency was determined by the value of the precious metal used to mint the currency. From the time Federal Reserve took control of money and credit, economic consistency is attained by […]
• Money and Banking. Financial Markets The essay will examine the essence and the importance of the above-mentioned financial phenomena and see how their interrelation, especially in the negative context, can influence the state of things in society.
• Money and Justice: High-Profile Cases It is estimated that thousands of persons bracketed in the ‘poor’ sector of society go to jail annually in the United States without having spoken to a lawyer.
• Relation Between Money and Football In the English league, clubs have been spending millions to sign up a player in the hope that the player will turn the fortunes of the company for the good.
• Accounting for Public Money After Railway Privatization There were very many problems prior to the railway privatization in 1990.one of the problems that led to the privatization of the railway line in the UK was the misappropriation of taxpayers’ money.
• Time Value of Money and Its Financial Applications The time value of money refers to the idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity.
• Time Value of Money in Examples Therefore, re-purchase of the shares appeals to the managers of the company because it will allow the company uses the money to regenerate more money for the purpose of repurchase the shares in the future.
• Wall Street Managers: The Art of Making Money In the end, the goal of Wall Street managers is to ensure optimal returns in all of their investments. The evolution of Wall Street managers is etched in the history of financial markets.
• Money Laundering in the USA and Australia The International Money Fund has established that the aggregate size of money laundering in the World is approximately four percent of the world’s gross domestic product.
• Locke’s Second Treatise of Government and Voltaire’s Candide’s Value on Money Both written at a time when philosophers had started questioning the relevance of capitalism and the concept of wealth creation, it is evident that the two authors were keen on explaining the power of money […]
• The Concept of Money Laundering The first issue I have learned is that the main problem lies in the presence of Big Data that includes trillions of transactions of various financial organizations and systems.
• Fraud, Money Laundering, and Terrorism Financing After the audacious attack by Al-Qaeda and the destruction of the Twin Towers on 11th of September 2001, terrorism was declared the number one enemy to the peace and stability of the modern world.
• Time Value of Money – Preparing for Home Ownership The purchase price of the house is determined by using the following formula in Excel. 66 The down payment is 20% of the future value of the house, i.e, $40,278.13.
• Martin Van Buren: Money and Indian Relocation One of the reasons for such collaboration and understanding is the focus on the values we have. I believe this path will bring us to the land we all would like to live in.
• The General Theory of Employment, Interest and Money Money is a determinant of the propensity to consume; hence, the more money one makes, the more that he or she consumes and the converse is the case.
• The Practice of Saving Money Knowledge of the language is also a very crucial component of EAP as it aids the learner in understanding questions and responding to them in their examinations.another differentiating factor between the two varieties of English […]
• Money Market and Value-Based Pricing Consequently, the GDP can be defined by the equation: Y=C+I+G+NX where: Y= Total GDP, C=Consumption by household, I=Investment, G=Government expenditure, NX=Net Exports Net Domestic product entails the reduction of the GDP by the depreciation of […]
• How Money Markets Operate? Furthermore, only free markets have shown the resilience that is necessary to accompany the fluctuations in demand and supply of the money markets.
• Access Right to Money: Sculpture Theft Among the suspects, there are those in dire need of the money due to financial problems, while others need the values worth of the item and not the actual monetary price attached to the item.
• History of Money in Spain The production of coins melted from gold also ceased in the year 1904, with the production of that melted from silver ceasing in the year 1910.
• Money Flows and Financial Repression in the US and China From the article, the authors depict how the interest rates in developed countries like the United States compare with those of the emerging markets such as China, India, and Brazil.
• Management: “Marketplace Money” and “Undercover Boss” In this case, the accents are made on the support of the healthy workforce in order to guarantee the better employees’ performance and on the idea of rewards as the important aspects to stimulate the […]
• Money Compensation for Student-Athletes Besides, sports are highly lucrative for colleges, and students whose labor brings the revenues should share the part of them not to lose the interest in such activities.
• Chapters 1-3 of “Money Mechanics” by David Ashby The retained amount of money in the commercial bank is the primary reserve. The banks can decide to reduce their working reserve, and the money obtained is transferred to the excess reserve fund in accounts […]
• Banking in David Ashby’s “Money Mechanics” Changes in prices may not have a direct effect on the gross domestic product and the planned expenditures because this is determined by the money that is in supply. This causes the GDP and prices […]
• Karl Marx on Commodities, Labor, and Money Division of labour is very important in the production of commodities. The use-value of each commodity contains useful labour.
• The UAE Against Money Laundering and Terrorism Financing This valuation of the anti-money laundering and combating the financing of terrorism government of the United Arab Emirates is founded on the forty endorsements and the nine special commendations on extremist supporting of the monetary […]
• UAE Anti-Money Laundering Laws and Their Benefits The legal maintenance of counteraction to the legalization of criminal incomes is carried out by means of a system of laws and regulations, controlling financial, bank, and customs relations and establishing the order of licensing […]
• Money, Their Features, Functions and Importance The first hindrance is the inability of the household to monitor the activities of firms. In this case, it is used to state the value of debt.
• Happiness Without Money in Sociology and Psychology The tendency’s mechanics are simple – being in the possession of any substantial sum of money increases a person’s chance to secure a dominant status within the society, which in turn will result in strengthening […]
• Money Market Development Factors The money market is one of the fundamental elements in the functioning of any state. Under these conditions, the gradual rise of technologies and their implementation in the sphere of financial operations alter the money […]
• “God’ Money is Now My Money” by Stanley Seat It could be said that different priorities and the lack of time for supervision of the employees are the critical reasons for the violation of rules and high frequency of fraud in the religious institutions […]
• International Money Laundering Thus, money laundering has a profound impact on the state of the global economy, as well as on the economy of the U.S.
• Cybercrime and Digital Money Laundering The result of the investigation was the indictment of Western Express and a number of the company’s clients for several charges including stolen credit card data trafficking and money laundering.
• Hawala Remittance System: Anti-Money Laundering Compliance The existence and operation of money remittance systems is one of the primary features of developing economic relation at all scales from local to the global ones.
• Time Value of Money in Economies of Scale Also, the investigation of the VoF becomes easier by means of scrutinizing the tradeoff between the TVM and the EoS. The TVM is also employed to reach the integration of infrastructure investment valuation and risk […]
• Time Value of Money in Investment Planning The author of the post makes a good point that an amount of money is worth more the sooner it is received.
• David Leonhardt: May Be Money Does Buy Happiness After All The case study of Japanese citizens that support Easterlin paradox do not factor in the confounding psychological effects of the Second World War on the entire population and the country.
• Illegal Drug Use, Prostitution and Money Laundering Upon discussing the impact of money laundering, illegal drugs, and prostitution, the paper proposes the issuing of a court order restraining the use of wealth acquired from victimless crimes as one of the approaches to […]
• Getting Beyond: Show Me the Money Nevertheless, underpayment and overpayment are common, leading to dissatisfaction. Notably, compensation is part culture, but analytics will gain traction in the big data era, as start-ups leverage such advantages from experts to manage a sales […]
• Space Programs: Progress or Waste of Money? According to Ehrenfreund, the ingenuity to develop technologies and work in space is part of the progress that comes from space programs. Space programs have led to the development of technologies that improve air transport.
• “The Money Machine: How the City Works” by Coggan The media plays a chief role in educating the public concerning the various financial matters that affect the undertakings of the City.
• Money Evolution in Ancient Times and Nowadays In the means to defining what money is, most of the scholars from the psychological and physiological field have come up with the theoretical aspects of money and the ways it influences the economic growth […]
• Fraud and Crime Theory in the “Black Money” Movie The movie shows the irregularities involved in the acquisition of arms for the Saudi government. The movie is a perfect display of the international crimes and financial fraud that has been on the rise in […]
• Mercantilism, Stamped Money, and Under-Consumption It is paramount to note that he criticizes ideas of Ricardo quite frequently, and he believed that he did not consider the ideas that were suggested by other prominent economists.
• Money Evolution in the 21st Century and Before The history of the world cannot be described effectively without identifying the function of money. Money has been used to measure the value of resources and financial markets.
• Financial Crisis in Ferguson’s “The Ascent of Money” By Ferguson, the main purpose of the historian is to relieve humanity from the financial illusions on the examples of the past.
• Monetary Policy in “The Ascent of Money” by Ferguson
• The Airtel Money Service: Indian and African Paths
• Money History, Ethical and Social Standarts
• World Money History in the 20th Century and New Objects of Value
• Locke’s Work on Interest and Value of Money
• Money in the “Sheriff of Cape Breton” Case Study
• Medieval England in “Treatise on the New Money”
• Treatise on the New Money: Document Analysis
• Human Bondage in Ferguson’s “The Ascent of Money”
• Money History, Bonds, Market Bubbles, and Risks
• Park Avenue: Money, Power and the American Dream
• Deflation in the Quantity Theory of Money
• Money, Its Purpose and Significance in History
• “Who Stole the Money, and When?” by Greenberg
• Money History From the Middle Ages to Mercantilism
• Money Development From 600 BC to Nowadays
• Money Development and Its Stages in World History
• Market Society in “What Money Can’t Buy” by Sandels
• Employee Theft in “Who Stole the Money, and When?”
• European Union Anti-Money Laundering Directive
• Park Avenue: Money, Power and the American Dream – Movie Analysis
• T-Shirts “SENIOR 2016” and Time Value of Money
• Time and Money in “Neptune’s Brood” by Charles Stross
• Virgin Money Company’s Business Model in Canada
• Money in History and World Cultures
• Is College Education Worth the Money
• Artworks Comparison: Les Demoiselles d’Avignon and Tribute Money
• Weddings, Marriage, and Money in the UAE
• Money and Happiness Connection – Philosophy
• “Art for Money’s Sake” by William Alden
• Money’s and Banking’ Concepts
• Central Bank of Bahrain and Money Supply Regulation
• Why Money Is Important: Benefits & Downsides
• Psychological Research: Money Can Buy Happiness
• Finance: The History of Money
• Finance in the Book “The Ascent of Money” by Niall Ferguson
• Criminal Law: Blood Money From the Human Organs Sale
• Money as an Emerging Market Phenomenon
• Cyber-Crime – New Ways to Steal Identity and Money
• The Case of Stolen Donation Money
• Money and Banking: The Economic Recession of 2007
• Money and Banking: David S. Ashby’s Perspective
• Christian Moral Teaching and Money
• Money and Capital Markets: Turkey, India and China
• Money and Capital Markets: Central Banks
• Anti Money Laundering and Combating the Financing of Terrorism
• Mobile Money Transfer as an Alternative Product for Vodafone Group Plc
• UK and USA During the Period 2000-2010: Consumer Price Index, Unemployment Rate, Money Supply and Interest Rate
• Money Mechanics in the U.S.
• Money and Markets vs. Social Morals
• Money Laundering In Saudi Arabia
• Inflation Tax – Printing More Money to Cover the War Expenses
• Banks and the Money Supply
• Money Mechanics in Banks System
• Money Laundering In Russia
• Money and Work Performance
• Money Supply and Exchange Rates
• Mobile Money Transfer Service
• Central Banking and the Money Supply
• The Different Roles Played By the Central Bank, Depository Institutions, and Depositors in the Determination of Money Supply
• Jean-Jacques Rousseau and Karl Marx: The Role of Money in Human Life
• How Saudi Banks Deal With Money Laundery
• The Ascent of Money
• Niall Ferguson’s ‘The Ascent of Money’
• Role of Money in the American Dream’s Concept
• Money, Motivation and Employee Performance
• Money and Commodity Circulatory Processes
• Opinion on the Importance of Money
• Motivate Your Employees produced by BNet Video for CBS Money Watch
• We Should Use Tax Money to Enforce Mandatory Drug Treatments on Drug
• The World Surrounded by Money
• The World of Money
• Edwin Arlington Robinson: Money and Happiness in “Richard Cory”
• Federal Reserve; Money and Banking
• Ways to Spend Money in Saudi Arabia
• Sports Industry: Morality vs. Money
• Making Money on Music: The Company That Has to Stay Afloat
• Federal Reserve and the Role of Money in It
• What Do Money and Credit Tell Us About Actual Activity in the United States?
• What Influence Does Money Have on Us Politics?
• Can Money Change Who We Are?
• Does Government Spending Crowd Out Donations of Time and Money?
• Does More Money Mean More Bank Loans?
• Are Corporate Ceos Earning Too Much Money?
• Did the Turmoil Affect Money-Market Segmentation in the Euro Area?
• How Appealing Are Monetary Rewards in the Workplace?
• How Does Inflation Affect the Function of Money?
• Can Banks Individually Create Money Out of Nothing?
• Are Credit Cards Going to Be the Money of the Future?
• Does Money Protect Health Status?
• Can Cryptocurrencies Fulfill the Functions of Money?
• What Tools Used by the Federal Reserve to Control Money Supply?
• Are Athletes Overpaid Money Professional Sports?
• Does Electronic Money Mean the Death of Cash?
• What Does Motivate Employees and Whether Money a Key?
• What Are the Three Functions of Money?
• Are Gym Memberships Worth the Money?
• Does Broad Money Matter for Interest Rate Policy?
• Does Money Help Predict Inflation?
• Does One’s Success Depend on the Amount of Money a Person Earns?
• How Does Federal Reserve Control the Money Supply?
• Does Interest Rate Influence Demand for Money?
• Does Commodity Money Eliminate the Indeterminacy of Equilibria?
• Are College Degrees Worth the Money?
• Can Money Matter for Interest Rate Policy?
• How Banks Create Money and Impact of Credit Booms?
• How Can Virtualization Save Organization Money?
• Can Money Diminish Student Performance Disparities Across Regions?
• Chicago (A-D)
• Chicago (N-B)

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Wall Street gears up for US tax season liquidity test

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Davide Barbuscia covers macro investment and trading out of New York, with a focus on fixed income markets. Previously based in Dubai, where he was Reuters Chief Economics Correspondent for the Gulf region, he has written on a broad range of topics including Saudi Arabia’s efforts to diversify away from oil, Lebanon’s financial crisis, as well as scoops on corporate and sovereign debt deals and restructuring situations. Before joining Reuters in 2016 he worked as a journalist at Debtwire in London and had a stint in Johannesburg.

US dollar, gold rises are 'anomalies', says Bridgewater's Karniol-Tambour

Recent appreciations of the dollar and gold are "anomalies" and the greenback should not be so strong due to the U.S. deficit, Co-Chief Investment Officer at Bridgewater Associates Karen Karniol-Tambour said on Wednesday.

Chile's gross domestic product is expected to grow 2% to 3% in 2024 when compared to the year before, up from a previous forecast of 1.25% to 2.25% growth, the country's central bank said on Wednesday.

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Five money moves to make this spring

Expert recommends building an emergency fund containing up to six months’ worth of total expenses.

The cost of housing in America will continue going up: Barbara Corcoran

In a wide-ranging interview on 'Cavuto: Coast to Coast,' The Corcoran Group founder and 'Shark Tank' star Barbara Corcoran addresses market trends and challenges in real estate.

Most of us are familiar with the concept of "spring cleaning" when it comes to your home, but the spring season is also an ideal time to make some important decisions regarding your finances.

As you’re tackling your home improvement spring to-do list, add one more important task: cleaning up your finances.

"It can be challenging to reach your goals and feel in control of your financial future," Jesse Abercrombie, financial adviser and general partner at Edward Jones, told FOX Business. "But by reviewing your situation every year and making the appropriate moves, much like a spring-cleaning routine, can help you keep moving in the right direction."

A woman sits at home working on her laptop computer. (iStock / iStock)

Money moves that can start your spring off right

De-clutter your finances

Eliminating clutter can result in a positive feeling — and more livable space. This philosophy can be carried over to your money management.

"As an investor, you can also find clutter in the form of redundant investments," said Abercrombie.

For example, he said to ponder whether you own several nearly identical mutual funds.

SIX MOVES YOU’RE MAKING THAT CAN RUIN YOUR CREDIT SCORE

"You might want to consider selling some of these funds and using the proceeds to find new investments that can help you further diversify your portfolio," Abercrombie said.

To that point, he noted that diversification is a key in working toward investment success, but keep in mind that it doesn't ensure a profit or protect against losses in a declining market.

Plant seeds of opportunity

Commonly, spring is a time when individuals plant trees, flowers and other greenery. This mindset can also be utilized as you plan your spring money goals.

"When you invest you need to plant seeds of opportunity in the form of investments that you hope will grow enough to enable you to make progress toward your goals," said Abercrombie.

COST OF LIVING HINDERS YOUNGER GENERATIONS FROM SAVING FOR RETIREMENT: FIDELITY

He suggested that spring is a smart time to review your portfolio to ensure it’s providing this growth potential, given your individual risk tolerance.

Do a clean sweep to reduce risk

Have a goal to devote some spring-cleaning time to reducing potential hazards, and also devote your time to considering the possible threats to your financial security.

"For starters, review your life insurance to determine if you have enough," said Abercrombie.

Your employer may offer some coverage as an employee benefit, but is it sufficient? Do you need to consider private coverage?

Commonly, spring is a time when individuals plant trees, flowers and other greenery. This mindset can also be utilized as you plan your spring money goals. (iStock / iStock)

"The same is true for disability insurance, because if something were to happen to you, and you couldn’t work for a while, you’d still want to protect your family’s lifestyle," said Abercrombie.

Boost your "rainy day" fund

"Save for a rainy day" is an old piece of advice – and a timeless mantra.

According to Abercrombie, if you’re not prepared by having an emergency fund readily available to pay for an unexpected expense such as a temporary loss of employment, a major home or car repair or a large medical bill, you might be forced to dip into your IRA, 401(k) or other retirement accounts. This could cause you to incur taxes and possible penalties as well as lower the amount of money you’d have available for retirement.

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BlackRock Chairman and CEO Larry Fink discusses saving money for retirement on 'The Claman Countdown.'

"That’s why it’s a good idea to build an emergency fund containing up to six months’ worth of total expenses, with the money kept in a liquid, low-risk account that’s separate from the accounts you use for your daily spending needs," he recommended.

Seize the spring season to review bills and credit card accounts with a critical eye

Take an inventory of what you’re paying each month regarding recurring charges. Are you using all the services that you’re paying regularly for? Are there better alternatives?

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"Maybe you can cancel one or more streaming services, eliminate the landline or cancel the health club membership," said Brad Stroh, co-founder and co-CEO of Achieve. "Then, redirect the funds you save to pay off debt, or to up retirement savings."

How can small actionable steps create a good financial footing this spring?

Stroh said whether it’s trying to get out of debt or develop strong financial health, it’s important to make a plan.

"Saying you want to get out of debt, similar to saying you want to lose weight, is great, but the best intentions don’t constitute action plans," he said. "You need to do your research and figure out a realistic plan that you can commit to."