Which of the following is a characteristic of money market accounts?

Money market accounts are known for offering higher interest rates than traditional savings accounts, which is one of their defining characteristics. They generally require larger deposits, and in return, they provide the advantage of earning more interest on the account balance. However, these accounts typically impose limits on the number of transactions that can be made each month, which distinguishes them from regular checking accounts that allow unlimited transactions.

The structure of money market accounts—higher interest rates tied to larger deposit requirements and limitations on transactions—makes option B the correct choice. This aligns with the general features and advantages of money market accounts, which are often sought by individuals looking to earn more from their savings while maintaining some liquidity.

In contrast, other options do not accurately describe the features of money market accounts. For instance, the suggestion of unlimited transactions contradicts the nature of these accounts. Additionally, it is incorrect that money market accounts are not FDIC insured, as most money market accounts offered by banks do provide this insurance, which protects deposits. Lastly, the interest rates offered by money market accounts typically exceed those of average savings accounts, making the statement about lower interest rates inaccurate.