The Federal Reserve is offering Treasury bills with a par value of $40 billion for sale. They have received $18 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c c }
\text { Bidder } & \text { Frice Bid } & \text { Oty } & \text { Bid } \
\text { A } & \$ 9,825 & \$ 2 & \text { billion } \
\text { B } & \$ 9,815 & \$ 6 & \text { billion } \
\text { C } & \$ 9,800 & \$ 14 & \text { billion } \
\text { D } & \$ 9,700 & \$ 20 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

Question

The Federal Reserve is offering Treasury bills with a par value of $40 billion for sale. They have received $18 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c c } 
\text { Bidder } & \text { Frice Bid } &  \text { Oty } & \text { Bid } \
\text { A } & \$ 9,825 & \$  2 & \text { billion } \
\text { B } & \$ 9,815 & \$  6 & \text { billion } \
\text { C } & \$ 9,800 & \$ 14 & \text { billion } \
\text { D } & \$ 9,700 & \$ 20 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

Quizplus · Accepted Answer

The Answer of The Federal Reserve is offering Treasury bills with a par value of $40 billion for sale. They have received $18 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c c } 
\text { Bidder } & \text { Frice Bid } &  \text { Oty } & \text { Bid } \
\text { A } & \$ 9,825 & \$  2 & \text { billion } \
\text { B } & \$ 9,815 & \$  6 & \text { billion } \
\text { C } & \$ 9,800 & \$ 14 & \text { billion } \
\text { D } & \$ 9,700 & \$ 20 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

The Federal Reserve Is Offering Treasury Bills with a Par