Q405
Submitted bids in treasury bills auction consists of types which are
A.
competitive bids
B.
non-competitive bids
C.
treasury bids
D.
both a and b
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Submitted bids in treasury bills auction consists of types which are competitive bids and non-competitive bids. Treasury delivers securities to bidders who were awarded securities in a particular auction. In exchange, Treasury charges the accounts of those bidders for payment of the securities. Treasury bills are issued at a discount or at par (face amount) and are paid at par at maturity.