The non-competitive bidders get the allocation of treasury bills on __________?
Correct answer: D. preferential basis
- A. federal basis
- B. last basis
- C. firstly basis
- D. preferential basis
Explanation
Non-competitive bidders do not specify a yield or price, so their applications receive preferential allocation at the auction-determined price. Competitive bidders, by contrast, compete through their quoted rates or prices.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
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.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The federal funds are loans borrowed and lent on ____________?
The banks that deals with reciprocal agreements and accounts are considered as ____________?
The treasury bills are issued to raise significant amount of funds by ____________?
The interest rate paid on the traded Eurodollars is called as __________?
The submitted bids in the treasury bills auction consist of types which are _____________?
The process of issuing treasury bills is classified as ____________?