Question

one of the biggest disadvantages of money market​

Answer 1

Answer:

Disadvantages of a Money Market Account

Minimums and Fees. Money market accounts often need a minimum balance to avoid a monthly service charge, which can be $12 per month or more. ...

Low Interest Rate. Compared to other investments, money market accounts pay a low interest rate. ...

Inflation Risk. ...

Capital Risk

Answer 2

• The money market is a part of the economy which provides short-term loans to the people.
• The period for these loans is very small generally for a period of a year or less.
• The major disadvantage of the money market are:
• It reduces the purchasing power of people each year.  
• This is because the people investing in the money market get little return which is up to 3% every year. Due to inflation, this 3% is not a very good return on investment.
• As we can see the common stock has returned about 8 to 10 people and even more than 100%. Thus people would miss out on the opportunity for a better rate of return.  
• Thus can have a negative effect on the individual's ability to build wealth and get a high return on investment.