Along with other terms such as thank you, ty, thnx, thanx, and tyvm (The latter 3 being used frequently in chatspeak), a way of showing gratitude for a gift or a favor/service done for you. The shortened form of "Thank you" used in informal situations, such as when talking with close friends or classmates.
"Hey John, I picked you up a couple of sandwiches and a bottle of Coke for later." "Thanks, Tom."
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