Question

What are the general features of a Treasury Bill? (any three)

Hint:

Remember: T-Bills → Short-term + Safe + Discounted.

Answer 1

Concept: Treasury Bills (T-Bills) are short-term government securities issued to meet short-term financial needs.
Step 1: Features.

• Short-term maturity: Usually 91 days, 182 days, or 364 days
• Issued at discount: Sold below face value and redeemed at face value
• Highly safe: Backed by the government, hence risk-free
• No interest payment: Returns are through price difference

Step 2: Conclusion.
Thus, Treasury Bills are short-term, safe, and discounted government securities.