What is the minimum denomination for Treasury bills?

What is the minimum denomination for Treasury bills?

• A. $10,000
• B. $1,000
• C. $5,000
• D. $50,000

Answer: (A)

Denomination is the smallest face value at which a Treasury bill is issued. For Treasury bills, the official minimum issuance is ten thousand dollars, so the smallest single investment in a standard T-bill issue is ten thousand. This setup reflects how these instruments are primarily targeted at institutional investors and kept in larger lot sizes to streamline auction and settlement processes. While larger denominations exist, and investors can hold multiple bills to reach a desired total, the minimum unit you can purchase in a standard T-bill issuance is ten thousand. Hence, ten thousand is the correct choice.

Denomination is the smallest face value at which a Treasury bill is issued. For Treasury bills, the official minimum issuance is ten thousand dollars, so the smallest single investment in a standard T-bill issue is ten thousand. This setup reflects how these instruments are primarily targeted at institutional investors and kept in larger lot sizes to streamline auction and settlement processes. While larger denominations exist, and investors can hold multiple bills to reach a desired total, the minimum unit you can purchase in a standard T-bill issuance is ten thousand. Hence, ten thousand is the correct choice.