Income Intermediate: Money Market Deposit Accounts

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1.
Which of the following does not use money market deposit accounts?
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None of the above. All of the parties above use them.
2.
Money market deposit account funds may be used to purchase money market securities.
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True. This is their general purpose.
3.
The earnings on money market deposit accounts are generally _______ those of traditional savings accounts.
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Higher than. MMDA earnings are tied to the money market.
4.
Which of the following is not a popular reason to keep funds in a money market deposit account after it has been withdrawn from a tax-qualified retirement account?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.
5.
Why do money market IRAs have restrictions on when funds can be withdrawn?
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They may offer tax advantages. Because they are retirement accounts, they offer the possibility of tax deductibility or tax-deferral, and this requires restrictions on withdrawals.