The fund that invests solely in short-term debt instruments is a) Money Market Fund/Liquid Fund.

Here's why:

a) Money Market Fund/Liquid Fund: These funds invest in short-term debt instruments like Treasury bills, commercial paper, and certificates of deposit. They are considered safe with low risk and provide moderate income.

b) Closed-end Fund: This type of fund does not solely invest in short-term debt instruments. It can invest in a variety of securities including stocks, bonds, and other assets.

c) G-Sec Funds: These funds primarily invest in government securities. While they can invest in short-term instruments, they also invest in long-term instruments.

d) Bond Fund: Bond funds invest in bonds and other debt securities, which can be both short-term and long-term.

e) Open-end Fund: This is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. It can invest in a variety of securities, not just short-term debt instruments.

Question

The fund that invests solely in short-term debt instruments is a) Money Market Fund/Liquid Fund.

Here's why:

a) Money Market Fund/Liquid Fund: These funds invest in short-term debt instruments like Treasury bills, commercial paper, and certificates of deposit. They are considered safe with low risk and provide moderate income.

b) Closed-end Fund: This type of fund does not solely invest in short-term debt instruments. It can invest in a variety of securities including stocks, bonds, and other assets.

c) G-Sec Funds: These funds primarily invest in government securities. While they can invest in short-term instruments, they also invest in long-term instruments.

d) Bond Fund: Bond funds invest in bonds and other debt securities, which can be both short-term and long-term.

e) Open-end Fund: This is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. It can invest in a variety of securities, not just short-term debt instruments.

Knowee AI · Accepted Answer

The fund that invests solely in short-term debt instruments is a) Money Market Fund/Liquid Fund.

Here's why:

a) Money Market Fund/Liquid Fund: These funds invest in short-term debt instruments like Treasury bills, commercial paper, and certificates of deposit. They are considered safe with low risk and provide moderate income.

b) Closed-end Fund: This type of fund does not solely invest in short-term debt instruments. It can invest in a variety of securities including stocks, bonds, and other assets.

c) G-Sec Funds: These funds primarily invest in government securities. While they can invest in short-term instruments, they also invest in long-term instruments.

d) Bond Fund: Bond funds invest in bonds and other debt securities, which can be both short-term and long-term.

e) Open-end Fund: This is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. It can invest in a variety of securities, not just short-term debt instruments.

Which of the following funds invests solely in Short term debt instruments only?2 pointsa) Money Market Fund/Liquid Fundb) Closed-end Fundc) G-Sec Fundsd) Bond Funde) Open-end Fund

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