An MMDA is a short-term deposit where the bank can offer a competitive interest rate and which allows up to six preauthorized drafts per month.

Question

Quizplus · Accepted Answer

This statement is true. An MMDA (Money Market Deposit Account) is a type of deposit account that typically offers higher interest rates than a traditional savings account, but with some restrictions on withdrawals or transfers. Most MMDAs allow up to six preauthorized drafts or transfers per statement cycle or month before incurring additional fees, as per banking regulations.

An MMDA Is a Short-Term Deposit Where the Bank Can