Question

18) If your noncompetitive bid for a Treasury bill is successful, then you will A) certainly pay less than if you had submitted a competitive bid. B) certainly pay more than if you had submitted a competitive bid. C) pay the average of prices offered in other noncompetitive bids. D) pay the same as other successful noncompetitive bidders.

Answer 1

Answer: D

If your noncompetitive bid for a Treasury bill is successful, you will pay the same as other successful noncompetitive bidders.
This means that option D is the correct answer.
In noncompetitive bidding, you submit a bid without specifying the price at which you are willing to purchase the Treasury bill. Instead, you agree to accept the yield determined by the auction.
Noncompetitive bids are typically smaller in size compared to competitive bids.