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What are Treasury bills?💵

What are Treasury bills?💵

Treasury bills🤔 are short terms loans issued by the government🏛🌐. When you buy a treasury bill you are essentially loaning money to the government. The Government pays you interest and your full capital at the maturity of the loan( When the loan ends).🌋
Treasury Bills have a face value which is what they are actually worth.🏷🔖 They are more often sold below their face value💡🕯 due to economic reasons such as investors not being confident the government will pay back or pay back on time.

The amount between the price💶💵 you pay and the face value of the treasury bill is called the discount rate.💡🔦

Treasury bills are considered as one of the safest in the world as they are Government backed but not all Governments fulfil their obligations.☢🚫

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What are Treasury bills?💵
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