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Quantitative Finance · Glossary

What is Money-market fund?

Definition 2.8 Markets II: Rates, FX and Credit · Chapter 2 — Money Markets

A money-market fund (MMF) is a mutual fund restricted to short, high-quality instruments that offers daily liquidity and a share value that moves little or not at all. Government funds hold bills, other government securities and repo backed by them; prime funds also hold paper and bank deposits; many government and retail funds keep a stable share price of one dollar.

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