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VANGUARD FEDERAL MONEY MARKET FUND INVESTOR SHARES
This fund pools money from investors to buy short-term government securities like Treasury bills. It provides a safe place to park cash with easy access, similar to a high-yield savings account. The fund makes money by earning interest on these government bonds and passes most of it to investors as income.
Money market funds are part of the cash management industry, where investors park money for safety and easy access. These funds compete with bank savings accounts and short-term bonds, with performance heavily influenced by interest rate decisions from central banks like the Federal Reserve.
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