TXT is a file format that contains the text, organized in rows. Text files opposed binaries that contain data that is not intended for interpretation as a text (encoded sound or image). The text file can contain both formatted and unformatted text. Since the very simple text files, they are frequently used for storing data.
Template file created by Microsoft Word, a word processing program; contains default layouts and settings for a document, including styles, AutoText, toolbars, and macros; used as a baseline to create multiple .DOCX documents with the same formatting.