Short-dated government bonds are best described as:

Short-dated government bonds are best described as:

• A. A way for a company to deposit or loan excess cash with the government for a short period.
• B. A long-term government debt instrument.
• C. A type of corporate bond with high yield.
• D. A savings account with government guarantee.

Answer: (A)

Short-dated government bonds are short-term securities issued by the government to borrow funds for brief periods, typically maturing within a year. For a company with idle cash, buying these instruments is effectively placing excess cash with the government for a short time—lending to the government in return for a small, predictable return and high liquidity. They’re used for safe, liquid cash management and are not long-term debt, not corporate bonds, and not a savings account.

Short-dated government bonds are short-term securities issued by the government to borrow funds for brief periods, typically maturing within a year. For a company with idle cash, buying these instruments is effectively placing excess cash with the government for a short time—lending to the government in return for a small, predictable return and high liquidity. They’re used for safe, liquid cash management and are not long-term debt, not corporate bonds, and not a savings account.