If one wanted to make monthly deposits to accumulate funds for near term expenditures like a...
If one wanted to make monthly deposits to accumulate funds for near term expenditures like a vacation or a car/house down payment, a money market account would be an appropriate savings vehicle.
True
False
Homework Answers
True. A money market account would be an appropriate savings vehicle to meet any expenses that occur in the near term, typically less than one year.
So, making monthly deposits to meet the near term expenditures in money market savings account makes sense.
The money market account has great liquidity and the return would be guaranteed than capital market investments such as stocks.
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