What best describes a money market deposit account?

• A. A fixed-term savings product with penalties for early withdrawal
• B. A retirement account with tax benefits
• C. A demand-checking account with unlimited transactions
• D. A deposit account that pays interest based on current money market rates

Answer: (D)

Money market deposit accounts are bank accounts that earn interest tied to current money market conditions, rather than a fixed rate. They usually offer a higher yield than regular savings, may require a minimum balance, and often allow limited check-writing or transfers. This description matches a deposit account that pays interest based on current money market rates. It's not a fixed-term product with penalties for withdrawal, not a retirement account, and not a standard checking account with unlimited transactions, which is why the option describing the current money market rate–based interest is the best fit.