Offering Institutions Post Lower Yields on SNOWs Than on MMDAs

question 124

Multiple Choice

Offering institutions post lower yields on SNOWs than on MMDAs because:

• A)ratings on institutions issuing SNOWs are higher.
• B)SNOWs can be drafted more frequently by customers.
• C)federal regulatory authorities classify MMDAs as transaction deposits.
• D)MMDAs carry unlimited check-writing privileges.
• E)MMDAs have longer maturities than SNOWs.