Which of the following accounts would tend to give you the higher interest combined with ease of access to your funds on a limited basis?
A) Checking account
B) MMDA
C) NOW account
D) CD

Question

Quizplus · Accepted Answer

MMDA (Money Market Deposit Account) typically offers higher interest rates compared to checking and NOW (Negotiable Order of Withdrawal) accounts, while still providing some degree of liquidity, allowing for limited withdrawals or transfers. CDs (Certificates of Deposit), although potentially offering higher interest rates, significantly restrict access to funds until the maturity date without penalty.

Which of the Following Accounts Would Tend to Give You