Answer (D) is correct . Marketable securities are near-cash items used primarily for short-term investment. Examples include U.S.?Treasury bills, Eurodollars, commercial paper, money- market mutual funds with portfolios of short-term securities, bankers’ acceptances, floating rate preferred stock, and negotiable CDs of U.S.?banks. A convertible bond is not a short-term investment because its maturity date is usually more than 1?year in the future and its price can be influenced substantially by changes in interest rates or by changes in the investee’s stock price.
Answer (A) is incorrect because U.S.?Treasury bills are short-term marketable securities.
Answer (B) is incorrect because Eurodollars are short-term marketable securities.
Answer (C) is incorrect because Commercial paper is a short-term marketable security.
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