Certificates of Deposit

A

The correct answer is A. Money market deposit accounts.

Money market deposit accounts (MMDAs) are a type of deposit account offered by banks and other depository institutions that typically offer higher interest rates than traditional savings accounts in exchange for a higher minimum balance requirement. MMDAs are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount allowed by law.

MMDAs compete for deposits with other types of financial products, including money market mutual funds and time deposits (also known as certificates of deposit). Money market mutual funds are similar to MMDAs in that they invest in short-term, low-risk securities and aim to provide investors with a stable return. However, money market mutual funds are not insured by the FDIC and are not considered deposits.

Time deposits, on the other hand, are a type of deposit account that typically offer higher interest rates than MMDAs and require the account holder to commit to leaving the funds in the account for a specific period of time, ranging from a few months to several years. Time deposits are also insured by the FDIC.

Asset management accounts (AMAs) are a type of investment account offered by brokerage firms that provide investors with a range of investment options, including stocks, bonds, and mutual funds. AMAs typically require a higher minimum balance than MMDAs and are not insured by the FDIC.

In summary, MMDAs are a popular offering at banks and other depository institutions that compete for deposits with money market mutual funds, time deposits, and asset management accounts.