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Economic Definition of Treasury securities. Defined.

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Term Treasury securities Definition: Financial instruments or legal claims used by the federal government to borrow money. Treasury securities are issued by the U.S. Treasury to cover the federal government's budget deficit. They are classified as either Treasury bills, Treasury notes, or Treasury bonds. Much like consumers who borrow money from banks to finance the purchase of a house or car, the federal government borrows money to finance some of its expenditures. These bonds are widely traded and are very liquid. These securities include small denomination ($25, $50, or $100), nonnegotiable Series EE savings bonds purchased by consumers. The really serious money, however, is borrowed using larger denomination securities ($100,000 or more) purchased by banks, corporations, foreign governments, and others with large sums of funds to lend.


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