Solved

Banks Prefer Money Market Deposit Accounts to Demand Deposits for All

Question 18

Multiple Choice

Banks prefer money market deposit accounts to demand deposits for all of the following reasons except:


A) required reserves on money market deposit accounts are lower.
B) money market deposit accounts are less interest rate sensitive than demand deposit accounts.
C) demand deposit accounts have fewer checks written each month.
D) average demand deposit balances are higher than money market deposit account balances.
E) money market deposits accounts are not limited to the $250,000 deposit insurance limit like demand deposit accounts.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents