(in light of added questions from others, my question is slightly edited)
New to investment and only recently did I notice that in the US some money market funds generate 1.5-2.3% yields, which are comparable to most short-term (<2 yr) CD rates.
Based on the yields and comparable taxes,
(a) is it correct that money market funds are a better investment now ? Considering that there is a penalty for an early withdrawal of funds in the CD but money market funds are more fluid and can be withdrawn when yields drop (with no penalty).
(b) what specific risks should I look for in the money market funds ?