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Which of the Following Is True Regarding Money Market Deposit

Question 14

Multiple Choice

Which of the following is true regarding money market deposit accounts (MMDAs) ?


A) A maximum of three checks per month may be written on a MMDA account.
B) The average check size on an MMDA account is smaller than the average demand deposit check size.
C) MMDAs are formally transaction accounts.
D) Required reserves on MMDAs are higher than on demand deposit accounts.
E) Rates paid on MMDAs are generally higher than rates on money market mutual funds.

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