5-9 A change from commercial bank deposits to money market mutual funds typically allows an investor to benefit from higher yields,but with the cost of losing deposit insurance coverage.

Question

Quizplus · Accepted Answer

Money market mutual funds generally have higher yields compared to commercial bank deposits, but they are not insured by the FDIC or any other government agency, which means that there is a risk of losing the principal investment. Therefore, the investor can benefit from higher yields but at the cost of losing deposit insurance coverage.

5-9 a Change from Commercial Bank Deposits to Money Market