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A T-Bill is characterized by all of the following EXCEPT:

a it is issued at a discount.
b. it has a $1,000 minimum denomination.
c. maturities are up to two years.
d. it is in book-entry form.

1 Answer

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Final answer:

A T-Bill is characterized by being issued at a discount, having a minimum denomination of $10,000, and maturities of less than one year, not up to two years nor with a $1,000 denomination.

Step-by-step explanation:

A T-Bill, or Treasury Bill, is characterized by several distinct features, but the correct characterization includes that it is issued at a discount and it is in book-entry form. However, one of the options provided in the question does not accurately describe a T-Bill. Specifically, the statement that maturities are up to two years is not correct for a T-Bill. Treasury Bills have maturities of 13, 26, or 52 weeks, which is less than one year. Moreover, the minimum denomination for a T-Bill is not $1,000, but rather $10,000. Thus, both options 'b' (it has a $1,000 minimum denomination) and 'c' (maturities are up to two years) are incorrect.

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