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In ____________ funds, the money is invested primarily in short-term or very short-term instruments e.g. T-Bills, CPs etc.a. Growth fundsb. Income fundsc. Liquid fundsd. Tax-Saving Funds (ELSS)

Question

In ____________ funds, the money is invested primarily in short-term or very short-term instruments e.g. T-Bills, CPs etc.a. Growth fundsb. Income fundsc. Liquid fundsd. Tax-Saving Funds (ELSS)

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Solution

The answer is c. Liquid funds. These funds primarily invest in short-term or very short-term instruments such as Treasury Bills (T-Bills) and Commercial Papers (CPs).

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