TeachMeFinance.com - explain Treasury bill (T-bill)
Treasury bill (T-bill) -- a short-term debt obligation issued by the U. S. Treasury at a discount under competitive bidding, with a maturity of up to one year. The bills are issued payable to the bearer only, and are sold at a minimum face value of $10,000.
Treasury bill -- English ; practically a government promissory note, payable in 3, 6, 9 or 12 months. When the treasury is in need of money for current expenses it sells its bills (paper) at a discount the same as would a merchant in need of funds. Tenders (bids) are invited for the bills and the best offers are accepted. Most of the English floating debt is in the form of treasury bills. Treasury bills are also issued by India and some British colonies.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.