Why are money market funds more like money than are certificates of deposits?

Why are money market funds more like money than are certificates of deposits?

 

 

Answer:

MMF are more likely to use when there is an immediate need of cash. for example, if your car engine gets damaged you will not give penalty for taking out money prematurely from a one year CD. MMF are more flexible and helps in raising interest rate environment. usually banks adjusts the yeild on MMF and offers opportunity to earn more money as your interest rate rises.

Asked on February 13, 2018 in economics.
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