The management of short-term investments is based on liquidity and safety. Liquidity is how easily the short-term investments can be converted into cash, and safety is how likely they are to hold their value.
The minimization of taxes is not the primary concern of short-term investments.
This answer is incorrect because treasury bonds are not liquid enough to be used as a short-term investment. See the correct answer for a complete explanation.
The maximization of return is not the primary concern of short-term investments.
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