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.

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Definitions:

Chest Circumference

A measurement around the thorax or chest area, often used in medical assessments or to determine clothing sizes.

Measuring Tape

A flexible ruler used to measure size or distance, commonly made of cloth, plastic, or metal.

Head Circumference

A measurement around the largest part of the head, used in medical practice to assess brain growth and development, especially in infants and children.

Nearest Inch

A method of measurement rounding to the closest inch, used for precision in various measurement contexts.