Which of the following best describes the nature of marketable securities?

Marketable securities are best described as highly liquid and short-term investment options. This is because marketable securities refer to financial instruments that can be quickly converted into cash with minimal impact on their price. They typically include stocks, bonds, and other financial assets that have a ready market and can be sold or bought easily.

The liquidity of marketable securities makes them attractive to investors who may need access to cash in the short term, allowing for flexibility in managing cash flows. Marketable securities are often classified as short-term investments because they can be held for a brief duration before being converted to cash or used to take advantage of investment opportunities.

In contrast, options that describe marketable securities as illiquid or requiring a long-term commitment do not accurately reflect their key characteristics. Marketable securities are designed for investors who prioritize liquidity and accessibility, making option B the most accurate description.