In the T-Bill auction process, the competitive bidder is guaranteed a ______________ and a noncompetitive bidder is guaranteed a _______________.

Question

Quizplus · Accepted Answer

In a T-Bill auction, a competitive bidder specifies the yield they are willing to accept, thus they are guaranteed a maximum price they are willing to pay. A noncompetitive bidder agrees to accept the yield determined at auction, thus they are guaranteed a given quantity of T-Bills.

In the T-Bill Auction Process, the Competitive Bidder Is Guaranteed