Problem regarding the money market mutual fund

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Reference no: EM131011049

Shu has narrowed her "savings" account choices to a standard checking account paying 1.25 percent, a money market deposit account (MMDA) paying 3 percent, and a money market mutual fund (MMMF) earning 3.75 percent. Which liquid asset vehicle would you recommend for paying monthly expenses, and which would you recommend for saving the car down payment? Explain the advantages and disadvantages associated with each choice.

Reference no: EM131011049

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Problem regarding the money market mutual fund : Shu has narrowed her "savings" account choices to a standard checking account paying 1.25 percent, a money market deposit account (MMDA) paying 3 percent, and a money market mutual fund (MMMF) earning 3.75 percent.

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