Income Intermediate: Money Market Deposit Accounts

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1.
Why do money market IRAs have restrictions on when funds can be withdrawn?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.
2.
Retirement money market deposit accounts are insured for up to _______.
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$250,000.
3.
In the money market, _______ debt investments are bought and sold.
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Short-term. Money market investments are short-term in duration.
4.
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.
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.