What type of investments are typically found in a short-term investment account?

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The correct choice focuses on investments that can be liquidated quickly, which is a fundamental characteristic of short-term investment accounts. These accounts are designed for easy access to funds and typically include assets that can be converted to cash in a short period, often within a year. This can include money market funds, certificates of deposit (CDs) with shorter maturities, and Treasury bills, all of which allow investors to quickly retrieve their money when needed.

Other types of investments, such as those that expire in more than one year, would not fit the criteria of short-term investments as they are usually considered long-term. Investments in real estate often require significant time to sell and convert into cash, making them unsuitable for short-term positions. Similarly, commodities can be volatile and may not provide the quick liquidity that short-term investment accounts aim for. Thus, focusing on assets that can be liquidated quickly ensures that investors have the flexibility to access their funds when necessary.

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