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Why is investing in a money market mutual fund a higher risk than investing in a certificate of deposit?

because unlike CDs, money market mutual funds ____________________are not insured by the FDIC (gradpoint)


What is the investment advantage and disadvantage of money market mutual funds over Cd's and savings accounts?

Money market mutual funds are safe and extremely liquid. There are usually no fees associated with transactions in money market funds. Most brokerage accounts provide access to money market funds which can be used to park funds from stock or bond sales pending reinvestment. The drawbacks to money market funds are that the interest rate paid is only a fraction of a percent and the money held in brokerage accounts is not insured against loss by the FDIC. CDs and savings accounts offered by banks offer higher rates of interest and are insured against loss by the FDIC.


Are money market accounts FDIC insured?

Yes if they are in an institution otherwise covered by the FDIC and are within the coverage limits.


Why is investing in a money market risker than a CD?

CD is FDIC insured, but money market mutual fund is not.


Are Morgan Stanley money market checking accounts FDIC insured?

Yes


Does a home equity line of credit need to be FDIC insured?

FDIC insurance covers bank deposits, not home loans. If you pull money from a credit line and deposit it with a bank, those deposited funds may be FDIC insured.


Is a money market account safe for storing my funds?

Yes, a money market account is generally considered safe for storing funds as they are typically insured by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. However, it is important to note that money market accounts are not risk-free and may be subject to fluctuations in interest rates and market conditions.


Are Bank of America accounts FDIC insured?

As of January 1st, 2010 Bank of America no longer has FDIC nor has bank insured funds.


Are structured annuities FDIC insured?

Money in a bank is FDIC insured. Money with an insurance company is actually safer than with a bank.


When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?

True. When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC.


Are money market savings accounts safe for storing your funds?

Money market savings accounts are generally considered safe for storing funds because they are FDIC-insured up to a certain limit, which means your money is protected in case the bank fails. However, they may offer lower interest rates compared to other investment options.


Are bank cd's federally insured?

YepMoney market savings accounts are insured by the FDIC if the account's at a bank. They're insured by the NCUA if the money market account is at a credit union.yes they are insured up to 100,000 dollars during the credit crisis this limit was raised to 250,000 per account. Thus if you have more money than distribute it amongst several banks

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