Question 39

Treasury bills are issued with maximum maturities of 52 weeks.

Treasury bills, commonly known as T-bills, have maximum maturities of up to 52 weeks, making them a short-term investment option for government financing.

A) 4 weeks.

While T-bills can indeed be issued with a maturity of 4 weeks, this option does not represent the maximum maturity available. Therefore, this choice is incorrect as it understates the potential duration for which T-bills can be issued.

B) 13 weeks.

13 weeks is one of the standard maturities for T-bills; however, it does not encompass the maximum maturity. This makes option B also incorrect, as it fails to reflect the longest possible duration for T-bill issuance.

C) 26 weeks.

26 weeks is another standard maturity for T-bills, yet similar to the previous options, it does not represent the maximum term available. Thus, option C is incorrect for not identifying the longest maturity period.

D) 52 weeks.

This option correctly identifies the maximum maturity term for Treasury bills. T-bills can be issued with terms of up to 52 weeks, making this the accurate choice.

Conclusion

The correct answer is D) 52 weeks as it accurately reflects the maximum maturity term established for Treasury bills. Options A, B, and C all indicate shorter maturities and do not capture the full scope of T-bill issuance, confirming that only option D is correct in this context.