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Question
Banks prefer money market deposit accounts to demand deposits for all of the following reasons except:a. required reserves on money market deposit accounts are lower.
b. money market deposit accounts are less interest rate sensitive than demand deposit accounts.
c. demand deposit accounts have fewer checks written each month.
d. average demand deposit balances are higher than money market deposit account balances.
e. money market deposits accounts are not limited to the $100,000 deposit insurance limit like demand deposit accounts.
Answer
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