Money Market Fund: Ensuring A Smooth Flow of Money

In a world marked by free market and politics of international economic relation, money market funds play a pivotal role in maintaining a smooth flow of money in the market. Money market fund is one of the types of money market mutual fund. Money market fund is an ancillary part of the overall Securities department, and supplies money for meeting immediate debt securities. Money market funds invest in areas like US Treasury bills and marketable paper. In the US market, money market fund is considered a reliable option like banks and it is thought to provide safe services. Like in every country, money market funds in the US are also institutionalized and are regulated by Securities and Exchange Commission, which draws its legitimacy from the Investment Company Act of 1940. The chief purpose of a money market fund is to ensure liquidity in the market in order to keep the market run smoothly.

 

In the United States, there are several kinds of money market funds. These different hues of funds are generally categorized into Prime money fund, Treasury money fund, Tax-exempt money fund, institutional money fund, and retail money fund. These money market funds become more important in times of an economic meltdown such as the US financial crisis in 2008. In the times of financial crisis, the market runs out of money, and in these crises, money market funds release commercial papers in order to liquidate the market. In this way, these funds provide debt security in the market.

 

A widely known name in the financial sector of the U.S. is Bruce Bent II. He is an exceptionally successful businessman and investor. His father was the founder of the first monet market fund, so Bent II fully understands zero risk and the financial world. Growing up he learned a lot from his father. Eventually he went to Northeastern University where he graduated with his Bachelor’s degree.

 

Bruce Bent has a rich and successful career in financial management. He currently works for Double Rock Corporation where he is the Vice Chairman of the board and the president. His innovating and creative cash-related solutions has help many financial companies.

For more information follow Bruce Bent II on Twitter.

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