The interest rate paid on money market deposit accounts by U.S.DIs must directly reflect the rates earned on investments in commercial paper, bankers acceptances, repurchase agreement, and T-bills.

Question

Quizplus · Accepted Answer

The interest rates paid on money market deposit accounts by U.S. Depository Institutions (DIs) are determined by each institution and can be influenced by various factors including, but not limited to, the institution's own cost of funds, competitive factors, and general market conditions. They do not have to directly reflect the rates earned on specific types of investments such as commercial paper, bankers' acceptances, repurchase agreements, and T-bills.

The Interest Rate Paid on Money Market Deposit Accounts by U.S.DIs