Which One of the Following Statements Is Correct

question 38

Multiple Choice

Which one of the following statements is correct?

• A)The money market refers to securities that mature in two years or less.
• B)Banks are prohibited from investing cash surpluses on behalf of their customers on a short- term basis.
• C)Short-term securities tend to have a high degree of interest rate risk.
• D)A cyclical firm may purchase marketable securities as part of its short-term financing plan.
• E)Corporations are not permitted to invest in money market mutual funds but can invest in bank money market accounts.