Banks generally pay higher interest rates on NOW accounts than on MMDAs.

Name: Banks generally pay higher interest rates on NOW accounts than on MMDAs.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

MMDAs (Money Market Deposit Accounts) typically offer higher interest rates compared to NOW (Negotiable Order of Withdrawal) accounts because MMDAs are savings accounts with limited transaction capabilities and often require higher minimum balances, allowing banks to use the funds more effectively to generate income.

Banks Generally Pay Higher Interest Rates on NOW Accounts Than