1 Introduction

1.01 The importance of money market funds as global financial intermediaries of short-term liquid capital is apparent from the size of the industry. Assets under management for these funds reached an all-time high of $5.8 trillion in the first quarter of 2009, exceeding the gross domestic product of Japan for the same year.1 By introducing millions of individuals to financial markets and investments, money market funds have had a profound impact on the contemporary financial landscape. Money market funds facilitate household savings, serve as a source of funding...