Which one of the following statements is correct? Multiple Choice The money market refers to securities that mature in one year or less. Banks are prohibited from investing cash surpluses on behalf of their customers on a short- term basis. Two primary reasons why a company holds cash are seasonal fluctuations and short-term investments. Short-term securities tend to have a high degree of interest rate risk. Corporations are not permitted to invest in money market mutual funds but can invest in bank money market accounts.