What is the primary purpose of treasury bills?

The primary purpose of treasury bills is to finance national debt. Treasury bills, or T-bills, are short-term government securities that are issued by the U.S. Department of the Treasury to raise funds for governmental operations and to cover the national debt. When the government needs to borrow money, it issues T-bills, which investors purchase, effectively lending money to the government.

These instruments are typically issued with maturities ranging from a few days to one year, making them a viable tool for managing short-term funding needs and ensuring that the government has the necessary liquidity to meet its obligations. The funds raised through the sale of these bills can be used to finance various aspects of government spending, including infrastructure projects, social programs, and other expenditures that contribute to the national economy.

In contrast, other types of securities or financial instruments are more suitable for corporate financing or providing long-term investment opportunities. Treasury bills specifically serve the purpose of addressing short-term funding needs of the government, which is why answer B accurately reflects their main role.