Which of the following statements is true about Money Market Accounts?

Money Market Accounts (MMAs) are often considered a type of savings account that typically offers higher interest rates compared to standard savings accounts. The true statement regarding MMAs is that they usually pay lower interest rates than Certificates of Deposit (CDs).

This is accurate because while MMAs do offer competitive interest rates, CDs generally provide higher yields in exchange for the requirement of locking in funds for a specific term. Customers choose MMAs for their liquidity and flexibility to withdraw funds, which makes them more accessible compared to the fixed terms associated with CDs.

Furthermore, the other options present inaccuracies; for instance, MMAs are not the riskiest form of investment—rather, they are low-risk, liquid accounts. They are also widely available through both banks and credit unions, not just investment firms, and they do have limits on the number of withdrawals or transactions allowed per month, which is typically around six, depending on federal regulations.