Final answer:
Treasury bills, or T-bills, are short-term financial instruments issued by the U.S. government with standard maturities of 13, 26, and 52 weeks, and sold at a minimum denomination of $10,000.
Step-by-step explanation:
Treasury bills, often referred to as T-bills, are short-term financial instruments that the U.S. government issues. They come with three standard maturity terms: 13 weeks (3 months), 26 weeks (6 months), and 52 weeks (1 year). T-Bills are considered to be one of the safest financial assets because they are backed by the full faith and credit of the United States government. Unlike Treasury notes (T-notes) that have a maturity of 2-10 years and Treasury bonds (T-bonds) that have maturities of more than 10 years up to 30 years, T-bills are designed for short-term investors and have a minimum denomination of $10,000.
Given their safety and short maturity, T-bills are a popular choice for investors looking to preserve capital and maintain liquidity. They are typically sold at a discount to their face value, and the profit for the investor is the difference between the purchase price and the face value paid by the government at maturity.