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Management · Q449

International Finance and Treasury

Graduate and Post Graduate · Management · question 449

Q449

In treasury bills auction, treasury bills are sold at

A.
premium basis
B.
discount basis
Answer
C.
competitive basis
D.
federal basis

Answer: Option B

Solution

Answer: Option B
Solution:
In treasury bills auction, treasury bills are sold at discount basis. Treasury bills are sold at a discount to the par value. It is a static value determined at the time of issuance and, unlike market value, it doesn't fluctuate on a regular basis., which is its actual value.