A Basic Money Market Fund typically prioritizes which type of investment?

A Basic Money Market Fund primarily focuses on investments that offer safety, liquidity, and short-term returns, making bank deposits the most suitable choice. These funds typically invest in short-term, highly liquid instruments such as Treasury bills, commercial paper, and certificates of deposit, which generally have maturities of one year or less. Bank deposits align perfectly with this focus as they are considered safe and provide quick access to cash.

While other investments like corporate bonds or equity investments might be part of a different fund strategy, they do not fit the objective of a money market fund. Corporate bonds, for example, have longer maturities and come with higher risk levels compared to the secure and liquid nature of bank deposits. Real estate investments also do not align with the goals of a money market fund due to their illiquid nature and longer investment horizon. Thus, the specificity of prioritizing short-term, low-risk investments firmly supports bank deposits as the correct answer.