Question

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

Answer 1

B. probably pay more than if you had submitted a noncompetitive bid.

Correct me if im wrong ^_^

Answer 2

B. probably pay more than if you had submitted a noncompetitive bid.

Step-by-step explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

The buying and selling of bonds owned by government by the Federal Reserve is generally referred to as open market sales.

An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show no net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing.

If your competitive bid that involves having other investors bidding for a Treasury bill is successful, then you will probably pay more than if you had submitted a noncompetitive bid.