In September of 2008, the money market mutual fund Reserve Primary Fund had a price of less than $1.00 for a dollar invested. How did this happen?
A) The fund invested in debt of Lehman Brothers, which was worthless when Lehman went broke.
B) The fund invested in high-yield junk bonds, which defaulted.
C) The fund invested in Treasuries, which yielded less than 0% returns.
D) This actually didn't happen. It cannot happen since the fund only invested in low-risk debt.
A
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