Question

which option best defines a money market account (mma)?
a. a type of savings account that includes benefits of a checking account, such as an atm card and checks.

b. a type of retirement account independent of an employer.

c. a time - restricted savings account with a guaranteed fixed yield.

d. an account that is federally insured but does not earn any interest.

which is a key difference of a money market account (mma) compared to a traditional savings account?
a. mmas do not have minimum balance requirements, while savings accounts always do.

b. mmas are a type of savings account that may come with an atm card and checks, similar to a checking account.

c. mmas offer variable yields, while savings accounts offer fixed yields.

d. mmas are federally insured, while savings accounts are not.

Explanation:

First Question (Defining Money Market Account):

• Option A: A Money Market Account (MMA) is a savings - like account that often has checking - related features such as ATM cards and check - writing capabilities.
• Option B: A retirement account independent of an employer is an IRA, not an MMA.
• Option C: A time - restricted savings account with a guaranteed fixed yield is a certificate of deposit (CD), not an MMA.
• Option D: MMAs do earn interest, so this is incorrect.

• Option A: Both MMAs and some savings accounts can have minimum balance requirements, so this is incorrect.
• Option B: MMAs are a type of savings account that may offer checking - like features (ATM card, checks) which traditional savings accounts typically do not, this is a key difference.
• Option C: Both MMAs and savings accounts can have variable yields (or in some cases, savings accounts may have fixed rates but this is not a defining difference), and this statement is not accurate as a key difference.
• Option D: Both MMAs and savings accounts at insured institutions are federally insured, so this is incorrect.

Answer:

A. A type of savings account that includes benefits of a checking account, such as an ATM card and checks.

Second Question (Key Difference between MMA and Traditional Savings Account):