The bidder who can receive the allocation of treasury bills before all other bidders is the result of ___________?
Correct answer: A. highest bidder
- A. highest bidder
- B. lower bidder
- C. zero bidder
- D. non-competitive bidder
Explanation
In a competitive treasury-bill auction, bids are ranked and the most favourable accepted bid receives allocation first; this is typically the highest price bid or, equivalently, the lowest yield bid. A non-competitive bidder receives securities without specifying a price, but is not the answer to this ranking-based description.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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