A major reason for the development of money market mutual funds in the 1970s was that:
A)open-market operations were suspended.
B)bank deposit rates were capped at levels below market interest rates.
C)money market funds offered more flexible checking privileges than banks.
D)they were considered to be safer than banks.
E)money markets did not exist until 1970.

Question

Quizplus · Accepted Answer

In the 1970s, bank deposit rates were capped by the government at levels below market interest rates, which made traditional bank deposits less attractive to investors who wanted higher returns. As a result, money market mutual funds were developed to offer investors a higher yield alternative to bank deposits.

A Major Reason for the Development of Money Market Mutual