Money market deposit accounts and money market mutual funds are identical financial products.

Question

Quizplus · Accepted Answer

Money market deposit accounts and money market mutual funds are similar in that they both invest in low-risk, short-term securities, but they are different products. Money market deposit accounts are typically offered by banks and are insured by the FDIC, while money market mutual funds are offered by investment companies and are not FDIC-insured. Money market mutual funds also have higher minimum investment requirements and are not guaranteed to maintain a set net asset value like money market deposit accounts.

Money Market Deposit Accounts and Money Market Mutual Funds Are