A Principal Disadvantage of Conventional Checking Accounts Compared to Money

question 141

Multiple Choice

A principal disadvantage of conventional checking accounts compared to money market mutual funds is that checking accounts

• A)are less liquid.
• B)often do not pay interest.
• C)cannot be used as a store of value.
• D)are not insured by deposit insurance.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Cigarette Smoke

The smoke produced by burning tobacco in cigarettes, which contains a complex mixture of chemicals harmful to health.

Beemans Gum

A brand of chewing gum that has historical significance and is known for its pepsin flavor, which is often associated with aiding digestion.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.