ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Like a regular savings account, a money market account at a bank is insured by the Federal Deposit Insurance Corporation (FDIC), while one at a credit union is insured by the National Credit Union Administration (NCUA).

Detailed explanation-2: -In addition to transaction limits that your financial institution may impose, money market deposit accounts generally require you to deposit a minimum amount to establish an account and require you to maintain a minimum balance to receive the maximum interest rate.

Detailed explanation-3: -Money market accounts are pay a slightly higher interest rate than traditional savings accounts because banks invest in short-term, highly liquid low-risk assets. Many money market accounts come with minimum balance requirements.

Detailed explanation-4: -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.