A MONEY MARKET instrument issued by a governmental authority as a funding mechanism and a tool for conducting MONETARY POLICY . Bills are often issued on a discount, rather than COUPONBEARING, basis, and typically have maturities extending from one week to one year. Those issued by governments of industrialized nations are considered to be highly LIQUID and extremely creditworthy, with virtually no risk of DEFAULT. See also GOVERNMENT BOND .
Black’s Law Online Dictionary
