Economic Definition of money market deposits. Defined.
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Term money market deposits Definition: Bank accounts with limited check writing abilities that offer higher interest rates than typical savings accounts. Money market deposits were developed to compete with money market funds established by nonbank financial companies that invested customers funds in money market instruments, including U.S. Treasury bills and commercial paper. Banks, however, don't necessarily deposit customers funds in money market instruments. Money market deposits are part of the near monies added to M1 to derive M2 and M3 monetary aggregates.