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20. \"Breaking the buck\" refers to: (2 points) The impact of inflation on the \

ID: 1127107 • Letter: 2

Question

20. "Breaking the buck" refers to: (2 points) The impact of inflation on the "market basket" of goods and services, demonstrating that the purchasing power of a dollar has declined to below $1 The episode in which the exchange rate between the Euro and the US dollar went above 1:1, meaning that 1 Euro was now worth more than $1. a. b. c· The inability of a money market mutual fund to redeem its shares at $1 par value. d. The government deciding to print so many dollar bills that they are "....worth no more than the paper they are printed on..."

Explanation / Answer

The answer is C -) The inability of a money market mutual fund to redeem its share $1 par value,

because we know that -- Breaking the buck refers to the situation when the money market mutual funds investment income does not cover up the operating expenses or losses in investment.