What is the maturity range for U.S. Treasury bills?

What is the maturity range for U.S. Treasury bills?

• A. One to five years
• B. 91 to 360 days
• C. Over ten years
• D. Five to ten years

Answer: (B)

U.S. Treasury bills (T-bills) are short-term securities that the U.S. Department of the Treasury issues to help fund government operations. The maturity lengths for T-bills are specifically designed to be short-term; they typically range from 91 days to 360 days. Unlike other types of government securities, such as Treasury notes or bonds, which have longer maturities, T-bills do not have maturities extending beyond one year. This short-term nature allows investors to engage in relatively quick investments, with the securities maturing within a year and thus fitting the described range of 91 to 360 days perfectly. The other options represent different types of government securities or longer-term investment instruments. By leveraging the short maturity of Treasury bills, investors can manage interest rate risk and enhance liquidity within their investment portfolios.

U.S. Treasury bills (T-bills) are short-term securities that the U.S. Department of the Treasury issues to help fund government operations. The maturity lengths for T-bills are specifically designed to be short-term; they typically range from 91 days to 360 days. Unlike other types of government securities, such as Treasury notes or bonds, which have longer maturities, T-bills do not have maturities extending beyond one year. This short-term nature allows investors to engage in relatively quick investments, with the securities maturing within a year and thus fitting the described range of 91 to 360 days perfectly.

The other options represent different types of government securities or longer-term investment instruments. By leveraging the short maturity of Treasury bills, investors can manage interest rate risk and enhance liquidity within their investment portfolios.