Series 7 - General Securities Representative Exam

Preview Mode
Start Training Session

In a T Bill auction by the US Federal Reserve, which bids are filled first?

Bids Over Par
A
Non Competitive Bids
B
Competitive Bids
C
It depends on the sequence of the issue
D
Training

Explanations

The competitive bids are filled first in a dutch auction format. Later, the non competitive bids are filled at the average price paid during the competitive bid period.

Pricing