What is a typical characteristic of short-term notes?

Short-term notes are typically characterized by their quick maturation and their purpose in managing cash flow. When we consider the option stating that they are redeemed when other revenue becomes available, it accurately reflects the nature of short-term notes. These financial instruments are often used by government entities or organizations to cover temporary cash shortages or to finance short-term operational needs. When sufficient revenue is collected, either through taxes or other sources, these notes can be paid off.

The other options do not accurately represent the typical characteristics of short-term notes. For instance, they are not issued for more than ten years, as that would categorize them as long-term debt instruments. While some government notes might have backing or guarantees, not all short-term notes are guaranteed by the government. Furthermore, taxability at the state level typically refers to certain types of income or securities, but it is not a defining characteristic of short-term notes themselves. Thus, the choice related to redemption when other revenue is available aligns well with the operational function of short-term notes in financial management.