The development of Super NOWs and MMDAs helped money market funds to grow faster in the 1980s than they did during the 1970s.

Question

Quizplus · Accepted Answer

Super NOWs (Negotiable Order of Withdrawal) and MMDAs (Money Market Deposit Accounts) were introduced by banks to compete with money market funds by offering similar interest rates but with the added security of FDIC insurance. This competition actually slowed the growth of money market funds in the 1980s compared to their rapid expansion in the late 1970s, when such bank products were not available.

The Development of Super NOWs and MMDAs Helped Money Market