Question

money market accounts come with various features, but one stands out as a key benefit.
what is a key benefit of having a money market account?
choose 1 answer:
a no minimum opening deposit
b no low balance fees
c unlimited daily transactions
d higher interest rates paid compared to checking accounts

Explanation:

To determine the key benefit of a money market account, we analyze each option:

• Option A: Money market accounts typically require a minimum opening deposit, so this is incorrect.
• Option B: Many money market accounts do have low balance fees if the balance falls below a certain threshold, so this is incorrect.
• Option C: Money market accounts have restrictions on daily transactions (e.g., limited number of certain types of transactions), so "unlimited daily transactions" is incorrect.
• Option D: Money market accounts generally offer higher interest rates than checking accounts, which is a key benefit as they allow for better growth of savings while still being relatively liquid.

Answer:

D. higher interest rates paid compared to checking accounts