A T-bill is:

U.S. government debt issued with a maturity of a year or less.
any part of the U.S. government deficit financed by the Treasury Department.
any liability of a bank that shows up on its T-account.
a type of paper money that today is much less common than Federal Reserve notes.

The federal-funds rate is the interest rate:

commercial banks charge their best customers.
at which the U.S. Treasury borrows.
the Federal Reserve charges commercial banks when they borrow reserves.
banks charge each other when they lend or borrow legal reserves.

Back to Reading Overview Next Page