Which of the following statements about T-Bills is NOT true?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

The statement that T-Bills have maturities up to two years is not accurate. Treasury bills, or T-Bills, are short-term securities issued by the U.S. government with maturities that typically range from a few days to one year. They are issued with maturities of 4 weeks, 8 weeks, 13 weeks, 26 weeks, and 52 weeks. Therefore, it is incorrect to say that T-Bills have maturities extending to two years, as that duration falls outside the typical range for these financial instruments.

T-Bills are indeed issued at a discount to their face value, meaning investors pay less than what they will receive upon maturity. The minimum denomination for T-Bills is $1,000, and they are issued in book-entry form, meaning there are no physical certificates; ownership is recorded electronically. This structure is designed to enhance efficiency and security in the Treasury securities market, supporting the statements that are true regarding T-Bills.

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