Income Intermediate: Money Market Deposit Accounts

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1.
Individuals saving up for major purchases do not keep their funds in money market deposit accounts.
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True. These are indexed money market accounts.
2.
In the money market, _______ debt investments are bought and sold.
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Short-term. Money market investments are short-term in duration.
3.
Some money market deposit accounts offer rates that are tied to US Treasury bills.
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True. These are indexed money market accounts.
4.
Banks and credit unions insure money market deposit accounts.
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False. Both the Federal Deposit Insurance Corporation and the National Credit Union Administration insure deposits, but neither banks nor credit unions do.
5.
Which of the following is not a popular reason to keep funds in a money market deposit account after it has been withdrawn from a tax-qualified retirement account?
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None of the above. All of the above reasons are popular.