Final answer:
The maximum maturity for a Treasury bill is 1 year, with options for 13, 26, or 52-week maturities, and T-bills are considered very safe investments because they are backed by the U.S. government.
Step-by-step explanation:
The maximum maturity for a Treasury bill (T-bill) is indeed 1 year. T-bills are short-term government securities issued by the U.S. Department of the Treasury with maturities of 13, 26, or 52 weeks. These bills are designed for short-term investors and are issued with a minimum denomination of $10,000. T-bills are known for their short duration and are considered one of the safest financial assets as they are backed by the full faith and credit of the United States government.
In contrast, Treasury notes (T-notes) have maturities ranging from 2 to 10 years, and Treasury bonds (T-bonds) have maturities exceeding 10 years, up to 30 years. T-bills serve as a crucial instrument in the U.S. government's borrowing strategy, providing investors with a secure and short-term investment option.