ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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are not insured by the FDIC
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are not protected by the Securities and Exchange Commission
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do not earn a fixed interest rate
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must be held for a preset amount of time
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Detailed explanation-1: -Investment products that are not deposits, such as mutual funds, annuities, life insurance policies and stocks and bonds, are not covered by FDIC deposit insurance.
Detailed explanation-2: -An MMA is a type of mutual fund that invests in very short-term, interest-bearing instruments to generate a variable yield while preserving principal. It tends to deliver interest rates that are higher than savings accounts, but it often requires a higher minimum deposit.
Detailed explanation-3: -CDs are time-sensitive savings accounts, while mutual funds are investment vehicles in which money gets invested in stocks, bonds or other assets. Learn more about mutual funds. Which is safer: CDs or MMAs? Both CDs and MMAs are federally insured savings accounts, so they’re equally safe.
Detailed explanation-4: -Money market funds may provide potentially higher growth potential than a bank savings account and more flexibility than certificates of deposit (CDs). If you have an investment goal, you likely know when you’re going to need the money and how long you’ll need it to last.