Money market fund is a mutual fund that invests only in short-term securities. The term money market refers to the buying and selling of such securities. Money market funds are also known as liquid asset funds, cash funds, or money funds.

   Many institutions need to borrow money for short periods—a year or less. Such institutions include the federal government, banks and other financial forms, and corporations. The securities that these institutions sell in the money market yield returns closely tied to current interest rates. Common types of money market securities include Treasury bills and certificates of deposit.

   Like all other mutual funds, money market funds pool the money of many investors and pay them interest. The interest rate paid varies, depending on market conditions. However, it usually exceeds the rate small investors get in savings accounts that have limits on interest rates.

   The United States government does not insure the money in money market funds. However, money market funds invest mainly in lo-risk securities and are considered safe.

   Money market funds developed during the early 1970’s.Their low initial investment, high yields, and safety led to spectacular growth. However, that trend ended in 1982, when the federal government allowed savings institutions to offer federally insured accounts that provided yields similar to those of money market funds. Today, there are more than 450 money market funds in the United States. Their net assets total more than $260 billion.

   See also investment (Mutual funds); Mutual fund.  Money order is a document directing that a sum of stores and all United States and Canadian post offices sell money orders for a small fee. Money orders resemble checks and thus provide a safe way to send money through the mail. A purchaser fills out a money order and mails it t the person he or she has indicated. The person receiving the order may cash it at a bank or post office.

   U.S. postal money orders may be either domestic or international. A domestic money order may be sent anywhere within the United States. Domestic orders also may be sent to Antigua And Barbuda, the Bahamas, Barbados, Belize, the British Virgin Islands, Canada, Dominica, Grenada, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St Vincent and the Grenadinesand Trinidad and Tobago. An international money order may be sent to any of the approximately 75 countries that honor them.

   The highest face value of any single domestic or international money order is $700. No individual may purchase postal money orders exceeding $10,000 in face value on any day.

   A postal money order may be cashed at any time after the date of issue. Postal money orders may be endorsed only once. The United States Postal Service refunds the value of its money orders if they are lost or stolen in the mail.     

   Canadian postal money orders cannot have a face value of more than $999.99 in Canadian dollars. However, an unlimited number of money orders may be purchased.

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