Short-term securities are safe to keep idle cash balance.Choose from the following, one appropriate reason for this.

Question

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Short-term securities typically have low interest-rate risk because they mature quickly, so there is less time for interest rates to fluctuate and affect the value of the security. This makes them a safe option for keeping idle cash balances. High returns (B) and high net present value (C) are not typical characteristics of short-term securities, and ease of receiving interest payments (D) is not a major factor in the decision to invest in short-term securities.

Short-Term Securities Are Safe to Keep Idle Cash Balance