by 
bag100
ANSWERS: 1
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Traditionally, they were seen as a cash alternative (or an alternative to demand deposit, i.e. savings accounts) that could pay slightly more. So, they were supposed to be safe and liquid. Many assumptions were proven false in the recent financial meltdown, however, this being among them. Money market funds that invest only in T-bills are still, unfortunately, seen as completely safe (so long as the US government can continue to borrow in order to pay the debt they already owe). Of course, if the US government ever defaults, we'll all be in a world of shit anyway... best to have your money in Gold or some other hard asset if you think that's going to happen.
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