ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A account that increases the interest rate by a fixed amount ever 2 yrs
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A deposit account
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A depos account
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A checking account
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Detailed explanation-1: -A money market account is an interest-bearing account that you can open at banks and credit unions. They are very similar to savings accounts, but they offer some checking account features as well. Note that money market accounts are different from money market mutual funds, which are not deposit accounts.
Detailed explanation-2: -Money market account: Money market accounts are similar to savings accounts, but they typically require you to maintain a higher balance to avoid a monthly service fee. Both savings and money market accounts have variable rates.
Detailed explanation-3: -Money is measured with several definitions: M1 includes currency and money in checking accounts (demand deposits). Traveler’s checks are also a component of M1, but are declining in use. M2 includes all of M1, plus savings deposits, time deposits like certificates of deposit, and money market funds.
Detailed explanation-4: -Money market accounts-also known as money market deposit accounts (MMDAs)-are interest-bearing deposit accounts that are specifically designed to securely hold a depositor’s savings. As with most savings accounts, they pay interest on the money that you leave in your account and they are typically FDIC insured.