4. Interest-paying checking accounts - Their features and uses What Are Interest-Paying Checking Accounts and How Do They Work? Most interest-paying checking accounts exhibit characteristics of both checking and savings accounts. Specifically, they earn relatively high rates of interest, especially compared with regular savings accounts, and allow relatively limited check-writing privileges. They are available through depository and nondepository institutions, including commercial banks, savings banks, credit unions, stock brokerage firms, mutual funds, and other financial services companies. What are some of the important characteristics of the following four major types of interest-paying checking accounts? Read the following statements and then indicate the money market accounts to which each pertains. Check all that apply. Use the following abbreviations for the types of accounts: AMA: Asset Management Accounts MMMF: Money Market Mutual Funds MMDA: Money Market Deposit Accounts NOW: Negotiable Order of Withdrawal AMA MMDA MMMF NOW Funds invested in this account are protected by government-sponsored deposit insurance programs. 0 0 Funds invested in this account allow you to conduct all financial business with a single organization. 0 0 0 0 Given your understanding of the fundamental characteristics of the four major types of interest-paying checking accounts, assess the scenario that follows. Madison's Case Madison, a really good friend, has been asking a million questions about interest-paying checking accounts after receiving an inheritance from a relative she didn't know she had. She wants to create a unified and coordinated bundle of checking, savings, stock brokerage, and mutual fund accounts whose transactions are reported in a single monthly statement. Which interest-paying checking account would you recommend to Madison? O An AMA O A NOW account O An MMMF