Income Intermediate: Money Market Deposit Accounts

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1.
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.
2.
Some holders of money market deposit accounts transition their funds to other retirement accounts with the hope of earning higher returns.
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True. Though returns are never guaranteed, some accountholders move their funds to other investments with the expectation of higher yields.
3.
Money market deposit accounts vary in many ways. Which of the following is not one of these variations?
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None of the above. All of these are variations among MMDAs.
4.
Through which of the following means can individuals access the money market?
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Money market deposit account. This type of account has money market features.
5.
Individuals often use money market deposit accounts to do all but which of the following?
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Invest their tax revenue. Government bodies do this.