The auction of the TIPS security is classified as _________?
Correct answer: D. One bid auction
- A. premium bid auction
- B. discount bid auction
- C. multiple bid auction
- D. One bid auction
Explanation
TIPS are issued through a single-price, or uniform-price, auction, in which successful bidders pay the same accepted price. Option d appears to use “one bid” for this intended one-price auction method.
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