What type of securities can be classified as short term debt securities?

Short-term debt securities are typically characterized by their maturity period, which is usually one year or less. This classification includes instruments that provide investors with a quicker return on their investment compared to long-term securities.

When we look at the option that states securities issued by non-financial corporations for one year or less, it directly aligns with the definition of short-term debt securities. These instruments are often issued by companies to meet short-term financing needs, such as managing operational expenses or funding immediate projects. The concise timeframe of one year or less ensures that these securities can be easily traded in the market, providing liquidity to investors.

The other types of securities mentioned may serve important roles in the financial markets but do not meet the specific criteria for short-term debt securities. For example, government bonds typically have longer maturities, often exceeding one year, making them unsuitable for this classification. Convertible bonds are hybrid securities that can be converted into equity and, like government bonds, typically have longer terms. Accepted bank notes, while considered short-term instruments, are not classified as securities in the same context as corporate debt.

Thus, the securities issued by non-financial corporations for one year or less stand out as the only correct answer, accurately representing the characteristics of short-term debt