__________ Management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.
a. investment
b. money
c. credit
d. liquidity
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The correct answer is (d) liquidity.
Liquidity management involves decisions related to how much money a company should retain in a liquid form and how to allocate funds among short-term investment instruments. This is an essential aspect of financial management because it ensures that a company maintains enough cash or liquid assets to meet its short-term obligations and operational needs.
To arrive at this answer, I used my knowledge of financial management principles. Alternatively, you can also find the answer by conducting research on the topic of liquidity management or by referring to textbooks or reputable online sources that cover financial management concepts.