Which of the following is considered a common short-term instrument?

Tax anticipation notes are indeed considered a common short-term instrument. These are short-term debt securities issued by municipalities or other governmental entities to finance their immediate cash flow needs, specifically in anticipation of future tax receipts. They typically have maturities ranging from a few weeks to a year, making them suitable for addressing temporary funding requirements.

On the other hand, government bonds, equity shares, and long-term bonds do not fit the description of short-term instruments. Government bonds usually have longer maturities, often several years or more, which makes them less suitable for short-term financing. Equity shares represent ownership in a company and do not qualify as debt instruments. Long-term bonds are designed for financing over a longer horizon, usually exceeding one year, and cannot be classified as short-term instruments.

Thus, tax anticipation notes are aligned with the characteristics of short-term instruments, making them the correct answer.