A checking account on which the financial institution pays interest; it have no legal minimum balance is called:
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A. B. C. D.B
The correct answer to the question is A. Money market deposit account.
A money market deposit account (MMDA) is a type of checking account that typically pays a higher interest rate than a regular checking account. It is offered by financial institutions such as banks, credit unions, and savings and loans associations.
MMDAs usually have no legal minimum balance requirement, which means that customers can open an account with any amount of money. However, some financial institutions may require a minimum initial deposit to open an account, and they may charge fees if the balance falls below a certain level.
MMDAs are often used by customers who want to earn a higher interest rate on their checking account balance, while still having the convenience of writing checks and making electronic transactions. However, MMDAs typically have some restrictions on the number of transactions that can be made each month, in order to comply with federal regulations.
In contrast, a negotiable order of withdrawal (NOW) account is another type of checking account that pays interest, but it does have a legal minimum balance requirement. A money market mutual fund is a type of investment vehicle that pools money from many investors to buy short-term, low-risk securities. An asset management account is a type of investment account that combines various financial products, such as stocks, bonds, and mutual funds, into a single portfolio managed by a professional investment manager.