Understanding Treasury Bills: Your Guide to Short-Term Investments

Treasury Bills, often referred to as T-Bills, are fascinating instruments in the world of finance, particularly for those of you preparing for the WGU BUS2040 D076 Finance Skills for Managers Practice Exam. So, what exactly are they? First, let's clarify: Treasury Bills are short-term government securities that are sold without paying interest in the traditional sense. Instead, you buy them at a discount. When they mature, you receive the face value in full. This means the difference between what you paid and the face value is effectively your earnings—sounds simple, right?