What Are Treasury Bills?
In the previous lesson, we learned about bonds and how they work. Now, let's look at another type of investment called Treasury Bills.
Treasury Bills, also called T-Bills, are short-term investments issued by the government to raise money.
How Do Treasury Bills Work?
When you buy a Treasury Bill, you are lending money to the government for a short period.
After the investment period ends, you receive your money back according to the terms of the Treasury Bill.
How Long Do They Last?
Treasury Bills are usually short-term investments. They can have different maturity periods, depending on the issue.
Are Treasury Bills Risk-Free?
They are generally considered lower-risk investments because they are backed by the government. However, no investment should be treated as completely risk-free.
Treasury Bills can be useful for people who want a short-term investment option. In the next lesson, we will learn about Mutual Funds and how they work.