A checking account is more liquid than a money market account. True False

Money market accounts have a better rate of return than a savings account and you are allowed to write some checks. True False

Because checking accounts are ________ liquid for the depositor than savings accounts,they earn ________ interest rates.A) less; higherB) less; lowerC) more; higherD) more; lower

Which of the following statements is FALSE?A.When the FI uses its cash as the liquidity adjustment mechanism, both sides of its balance sheet contract.B.An FI's most liquid asset is cash. C.Mutual funds tend to have more exposure to liquidity risk than banks. D.Abnormally large and unexpected deposit withdrawals can occur because of concerns by depositors about a bank's solvency relative to other banks. E.A contagious run, or bank panic, differs from a run on a bank in that a contagious run involves loss of faith in the entire banking system as opposed to just one bank.

One key difference between the capital market and the money market is the:  A. Investment horizon  B. Level of liquidity  C. Regulatory oversight  D. Type of financial instruments traded

Which among the following is not correct regarding the Money Market?Question 7Answera.Money market instruments are not very highly liquidb.Function of money market is to provide inefficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc.c.Maturity in this market ranging from overnight to over one yeard.All above