BANKING AFFAIRS

Detailed explanation-1: -Expert-Verified Answer. Interest is usually paid on money market instruments at month end. Money market accounts pay interest regularly, and it is deposited directly into the account at the end of each month. The account, like a conventional bank account, pays a person interest when they deposit money into the account.

Detailed explanation-2: -Interest is generally calculated on a daily basis for money market accounts and is paid out at the end of each month directly into the account. Money market mutual funds are subject to lower interest rates because of the underlying assets, and because they are dependent on the applicable market interest rates.

Detailed explanation-3: -Money market accounts work like other deposit accounts, such as savings accounts. As customers deposit funds in a money market account, they earn interest on those funds. Typically, interest on money market accounts is compounded daily and paid monthly.

Detailed explanation-4: -These markets are described as “money markets” because the assets that are bought and sold are short term-with maturities ranging from a day to a year-and normally are easily convertible into cash.

Detailed explanation-5: -Money market instruments have maturities that range from one day to one year, although they are most often three months or less.