Question

Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid for immediately following the auction date on the following:A. TuesdayB. WednesdayC. ThursdayD. Monday

Answer 1

Answer:

C. Thursday

Explanation:

Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid on Thrusday immediately following the auction date.

Federal reserves conduct treasury bill auction on Monday or Tuesday. Treasury bills are auctioned weekly and one year Treasury bill are auctioned monthly. Amount of securities represented by non competitive bills are withheld from auction and are filled with average winning yield, these bids are taken priority.