Question

Money market mutual fund investors receive higher interest payments than they would on a savings account. TRUE FALSE

Answer 1

The given statement “Money market mutual fund investors receive higher interest payments than they would on a savings account” is true.

Answer: Option A

Explanation:

The money market accounts such as the mutual fund investing accounts for more interest pay than the normal savings account. The reason being that the saving account by the banks are low risk assets. But the interest pay are lower than the marketing account for two reasons, one being short term and other being low liquid risk asset.

Although both are deposit accounts only, but the saving account holders put money for short term as per the need requirement withdraw very often maintain low risk asset whereas the money market account is done on a certain money basis with limits and has checking account facility too.

Answer 2

Answer:

True

Explanation:

The Money Market Mutual Fund Investor has low-risk, but not as low as Savings Account. However, with that, the interest payment is higher (but not by too much) then a Savings.

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