MMDAs Are a Type of Savings Account That Has Some

question 43

True/False

MMDAs are a type of savings account that has some limited checking features. These accounts were designed to help banks compete with MMMFs.

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Definitions:

Herfindahl-Hirschman Index

An economic indicator that measures the level of concentration and competition within an industry.

Economies of Scale

Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.

Oligopolistic

Pertaining to an oligopoly, a market structure with a few firms dominating the industry, leading to limited competition.

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition within an industry.