Short-term definitions
| Word backwards | mret-trohs |
|---|---|
| Part of speech | adjective |
| Syllabic division | short-term has 2 syllables: short-term |
| Plural | The plural of the word "short-term" is "short-terms." |
| Total letters | 9 |
| Vogais (2) | o,e |
| Consonants (5) | s,h,r,t,m |
When it comes to finances, short-term is a term used to describe investments or obligations that are meant to be held or paid off in a relatively brief period of time. Unlike long-term investments or goals, which might span several years or even decades, short-term commitments are generally those that will be resolved within a year or less.
Characteristics of Short-Term
Short-term financial instruments may include things like savings accounts, certificates of deposit, treasury bills, and money market accounts. These investments are typically considered lower risk compared to long-term options, making them popular choices for individuals looking to preserve capital in the short run.
Benefits of Short-Term Investments
One of the key benefits of short-term investments is liquidity. Because these assets mature quickly, investors can access their funds when needed without having to worry about penalties or restrictions. In addition, short-term investments often come with lower volatility, providing some level of stability in uncertain market conditions.
Risks of Short-Term Investments
While short-term investments are generally considered less risky than long-term options, they are not without their drawbacks. One of the main risks associated with short-term investments is inflation risk. Inflation can erode the purchasing power of returns on short-term investments, especially if interest rates fail to keep pace.
Conclusion
In conclusion, short-term investments and obligations play a crucial role in financial planning for individuals and businesses alike. By understanding the benefits and risks associated with short-term commitments, investors can make informed decisions that align with their goals and risk tolerance. Whether it's setting aside funds for emergencies or capitalizing on opportunities in the market, short-term strategies can help pave the way for long-term financial success.
Short-term Examples
- I have a short-term project deadline to meet by the end of the week.
- Taking a short-term loan can help cover unexpected expenses.
- Short-term memory loss can be caused by various factors.
- The company is focusing on short-term goals to increase revenue this quarter.
- Short-term rentals are popular among tourists looking for temporary accommodations.
- A short-term solution is needed to address the current issue at hand.
- She decided to take a short-term course to improve her skills.
- Short-term investments can provide quick returns but may have higher risks.
- It's important to have a short-term plan as well as a long-term strategy for success.
- Temporary hires are often used for short-term projects within the company.