Generally, the safest and most marketable instrument for short-term investment is
A) commercial paper.
B) large denomination certificate.
C) Treasury notes.
D) Treasury bills.

Question

Quizplus · Accepted Answer

Treasury bills are considered the safest and most marketable instrument for short-term investment because they are issued by the US Treasury and have a maturity of less than one year. They are also highly liquid and traded on a discount basis, which means they are sold at a price lower than their face value and the difference is the investor's return. Treasury notes and commercial paper have longer maturities and may carry more risks, while large denomination certificates are not as easily traded and may come with higher fees.

Generally, the Safest and Most Marketable Instrument for Short-Term Investment