How Do Money Market Accounts Compare with Checking Accounts

question 29

Multiple Choice

How do money market accounts compare with checking accounts?

• A) They usually pay a lower rate of interest
• B) Checks must usually be written for a higher minimum amount
• C) Money market accounts usually do not require a minimum balance
• D) Neither type of account limits the number of checks that can be written each month

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Definitions:

Surplus

An amount of something left over when requirements have been met; in economics, it typically refers to excess supply over demand.

Shortage

A market condition whereby the request for a service or product goes beyond what is readily available.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where supply and demand curves intersect, resulting in market equilibrium.

Demand Schedules

A table that shows the quantity of a good that consumers are willing and able to purchase at various prices, holding all else constant.