Mandy has $2,000 she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Question

Quizplus · Accepted Answer

A money market deposit account (MMDA) is a type of savings account that typically offers a higher interest rate than a traditional savings account. It also allows for easy access to funds, making it a good choice for regular deposits and withdrawals. In this situation, Mandy plans to add $50 per month to her savings, and a money market deposit account would allow her to earn interest on her balance while still maintaining liquidity. Compared to other options listed, such as Certificates of Deposit (CDs) or US Treasury bills, an MMDA would provide Mandy with more flexibility in her savings plan.

Mandy Has $2,000 She Would Like to Start a Savings