How Mutual Funds Affect the Money Supply
Abstract
The purpose of this study is to answer two key questions that arose
about mutual funds through coming into contact with them during my
internship with IDS Financial Services.
The first question I wanted to answer was ''what exactly are mutual
funds and what has lead to their recent growth?". Furthermore, I
wanted to know ''what effect mutual funds were having on the money
supply and Federal Reserve Board policy decisions?"
Through researching the topic I was able to define the term mutual
funds in all its arenas. and conclude that its popularity stems from its
versatility. I also discovered that the answer to my second question
was tied specifically to money market mutual funds.
In answering these questions I was very methodical. By breaking
these two larger questions down into narrower topics I was able to
make sure I covered all aspects of my questions.