Question

Argue why are Treasury bills a favorite place for financial managers to invest excess cash, as compared to other options? Your answer must be supported with examples and academic citations.

Answer 1

Treasury bills are a favorite place for financial managers to invest excess cash because of the sizable and vibrant market in which they are traded.

What are treasury bills?

Treasury bills are referred to as short-term securities issued by the government when they require cash. In comparison to their face value, bills are offered at a discount.

As a result, the investor can choose any term from one day to a year, literally defining the desired maturity. Maximum liquidity is offered by the "T-bill" market, which may take on practically any volume of activity.

Learn more about Treasury bills, here:

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