Marketable securities are primarily________.

short-term debt instruments
short-term equity securities
long-term debt instruments
long-term equity securities

The correct answer is: A. short-term debt instruments.

Marketable securities are short-term debt instruments that are easily bought and sold in the secondary market. They are typically issued by governments, corporations, and financial institutions. Marketable securities are considered to be low-risk investments, and they are often used to generate income or to preserve capital.

Here is a brief explanation of each option:

  • A. Short-term debt instruments are loans that are due to be repaid within one year. They are typically issued by governments, corporations, and financial institutions. Short-term debt instruments are considered to be low-risk investments, and they are often used to generate income or to preserve capital.
  • B. Short-term equity securities are shares of ownership in a company. They are typically issued by corporations. Short-term equity securities are considered to be high-risk investments, and they are often used to generate capital gains.
  • C. Long-term debt instruments are loans that are due to be repaid more than one year from the date of issue. They are typically issued by governments, corporations, and financial institutions. Long-term debt instruments are considered to be higher-risk investments than short-term debt instruments, and they are often used to finance long-term projects.
  • D. Long-term equity securities are shares of ownership in a company. They are typically issued by corporations. Long-term equity securities are considered to be high-risk investments, and they are often used to generate capital gains.
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