BUSINESS ADMINISTRATION
BANKING AND INSURANCE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Detailed explanation-1: -The money market is composed of several types of securities including short-term Treasuries (e.g. T-bills), certificates of deposit (CDs), commercial paper, repurchase agreements (repos), and money market mutual funds that invest in these instruments.
Detailed explanation-2: -A money market account is a higher-interest deposit account offered by financial institutions, including banks and credit unions. If you’re saving for a future goal or want your money to grow more quickly while avoiding unsecured market investments, a money market account may be the right choice for you.
Detailed explanation-3: -A money market deposit account (MMDA) is a special type of bank or credit union savings account with some features not found in regular savings accounts. Also known as money market accounts (MMAs), most money market deposit accounts pay a higher interest rate than regular passbook savings accounts.
Detailed explanation-4: -Money market mutual funds (MMMFs) are securities offered by companies that invest in other money market instruments-such as commercial paper, certificates of deposit, Treasury bills, and repos. Money market mutual funds are regulated as investment companies in the United States and in the European Union.