Definition
Short-term debt obligations issued by the U.S. government with maturities ranging from a few days to 52 weeks. T-bills are sold at a discount to face value and do not pay interest directly; instead, investors earn the difference between the purchase price and face value at maturity.
Example Usage
"Conservative investors often use Treasury bills for their emergency funds because they offer virtually risk-free returns while maintaining high liquidity.”
Related Terms
Money MarketsGovernment SecuritiesRisk-Free RateShort-Term InvestmentDiscount Securities
Tags
Fixed IncomeGovernment SecuritiesMoney MarketsLow Risk
Course Module
Module 1: Introduction to Financial Markets