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Question
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.
Answer
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