Treasury Bills are:

• A. Long-term debt obligations with periodic interest payments.
• B. Direct short-term debt obligations of the US government issued weekly for 4, 13, and 26 weeks, issued at a discount.
• C. Adjustable-rate securities with quarterly resets.
• D. Bank deposits insured by the FDIC.

Answer: (B)

Treasury Bills are short-term U.S. government securities issued at a discount and do not pay periodic interest. They are direct short-term debt obligations of the U.S. government, typically issued with maturities of 4, 13, and 26 weeks through weekly auctions, and redeemed at par. The return comes from the difference between the purchase price (discounted) and the par value received at maturity. This contrasts with long-term securities that pay coupons, adjustable-rate instruments, or bank deposits insured by the FDIC.