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Treasury bills, commonly referred to as T-bills, are securities issued by the U.S. government specifically designed for short-term investments that typically mature in one year or less. They are sold at a discount to their face value and do not pay interest in the traditional sense; instead, the return on investment comes from the difference between the purchase price and the amount paid at maturity.

The key distinguishing factor for T-bills is their maturity period, which can range from a few days up to 52 weeks, making them highly liquid and suitable for investors seeking a safe, short-term place to park their money. This aligns with the characteristics and purpose of T-bills as a conservative investment option backed by the full faith and credit of the U.S. government.

In contrast to T-bills, Treasury notes have maturities ranging from two to ten years, and Treasury bonds typically have maturities exceeding ten years. Municipal bonds, or muni bonds, are issued by local or state governments and are generally used to finance public projects, making them unrelated to U.S. government short-term funding. Thus, the specific and defined short-term nature of Treasury bills makes them the correct choice.