Final answer:
United States Treasury Bills (T-Bills) are short-term securities issued by the federal government with maturities of 13, 26, or 52 weeks. They are considered very safe investments, backed by the full faith and credit of the U.S. government, which has a reliable history of repayment. T-Bills help the government manage budget deficits by borrowing from the public.
Step-by-step explanation:
United States Treasury Bills, or T-Bills, are short-term financial instruments that the federal government uses to borrow money. T-Bills have a maturity of 13, 26, or 52 weeks and come in a minimum denomination of $10,000. These assets are different from Treasury notes (T-notes) and Treasury bonds (T-bonds), as T-notes have a maturity of 2 to 10 years, while T-bonds mature in more than 10 years, up to 30 years, with denominations varying from $1,000 to $5,000.
T-Bills are highly sought after due to their reputation as the safest financial assets, backed by the faith and credit of the United States government. The U.S. government has an extensive history of consistently making payments on its bonds, proving the reliability of this investment.
Additionally, T-Bills, along with Treasury bonds and notes, play a significant role in managing the country's budget deficits. The government sells these securities to the public, domestic and international, promising to repay with interest in the future.