Income Intermediate: Money Market Deposit Accounts

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
Banks and credit unions insure money market deposit accounts.
Choose wisely. There is only one correct answer.
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.
Choose wisely. There is only one correct answer.
True. Though returns are never guaranteed, some accountholders move their funds to other investments with the expectation of higher yields.
3.
Which of the following does not use money market deposit accounts?
Choose wisely. There is only one correct answer.
None of the above. All of the parties above use them.
4.
Some money market deposit accounts offer rates that are tied to US Treasury bills.
Choose wisely. There is only one correct answer.
True. These are indexed money market accounts.
5.
In the money market, _______ debt investments are bought and sold.
Choose wisely. There is only one correct answer.
Short-term. Money market investments are short-term in duration.