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? The following tables shows abbreviations for the types of accounts: Abbreviations AMA: Asset Management Accounts MMMF: Money Market Mutual Funds MMDA Money Market Deposit Accounts NOW: Negotiable Order of Withdrawal Use the following table to indicate which of the money market accounts is described in the statements. AMA MMDA MMMF NOW This account pays the highest interest rate of any checkable account. O This account imposes limits on the number of checks that an account-holder can write per month Use the fundamental characteristics of the four major types of interest paying checking accounts to assess the following scenario During a discussion about money market accounts with her coworker, Beth says that it is critically important to have access to the money market funds via an ATM In which account should Beth not invest? O A NOW account An MMMF An AMA