The third question asked during your Initial Setup is about Template files. You can select the default, one of your own, or have AutoCAD create one based on the industry selection you made in question One.
Template files are used to create new files with setting already preset per your desires. When you create a new file, the template file is used. It basically does a “Save As” from the Template file.
More from the AutoCAD Help file: A drawing template (DWT) file is used to provide consistency for each new drawing (DWG) file that is created. DWT files can contain named objects, drawing based settings, and geometric objects. Stored named objects include layers, and text and dimension styles among others. Along with named objects, a DWT file can hold values for drawing based system variables, and any geometric object that might be common across multiple drawings such as a title block.
You can modify your template files at any time. Drawing template (DWT) files are no different than a drawing (DWG) file, with the exception of its file extension. Once a DWT file is opened, you can modify named objects such as layers, and text and dimension styles just as you would in a drawing. You open a DWT file with the OPEN command.