21-63 Which of the following has proven to be strong competition for bank deposit and transaction account products?

Question

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Money market mutual funds have proven to be strong competition for bank deposit and transaction account products as they offer competitive yields with the convenience of check writing and ATM access. They also provide greater diversification and liquidity compared to bank accounts. Other options listed such as commercial paper market, finance company business credit, and hedge funds do not directly compete with bank deposit and transaction accounts.

21-63 Which of the Following Has Proven to Be Strong