The correct answer is: A. money market funds.
Money market funds are a type of mutual fund that invest in short-term, low-risk securities, such as Treasury bills, commercial paper, and repurchase agreements. They are designed to provide a high level of liquidity and safety, while also offering a competitive yield. Money market funds are often used as an alternative to savings accounts or checking accounts, as they offer a higher interest rate and can be easily accessed.
Capital market funds, on the other hand, invest in long-term, higher-risk securities, such as stocks and bonds. They are designed to provide capital appreciation over time, but they also carry a greater risk of loss. Money mutual funds are similar to money market funds, but they invest in a wider range of securities, including stocks, bonds, and short-term debt instruments. Insurance money funds are a type of mutual fund that is designed to provide a source of income for retirees. They invest in a mix of stocks, bonds, and other assets, and they are designed to provide a steady stream of income over time.
In conclusion, money market funds are the only type of fund that is classified as an interest-bearing checking account. They are designed to provide a high level of liquidity and safety, while also offering a competitive yield.