6) Which of the following is true of a money market deposit account?
A) It has no maturity date.
B) It does not allow check writing privileges.
C) It does not require a minimum average monthly balance.
D) It pays interest.
Certainly! Here are the correct statements regarding a money market deposit account:
A) It has no maturity date. - A money market deposit account typically does not have a set maturity date, meaning you can keep your funds in the account for an extended period without worrying about them being locked in for a specific term.
B) It does not allow check writing privileges. - In general, money market deposit accounts do not offer check-writing privileges. They are designed to be more liquid than certificates of deposit (CDs) but still restrict certain transactions like writing checks.
D) It pays interest. - Money market deposit accounts do pay interest on the deposited funds, often at rates that are higher than traditional savings accounts. This interest helps account holders grow their savings over time.
These three statements accurately describe features commonly associated with a money market deposit account.
