In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted:Bidder A bid for $500 mil at price .9940; Bidder B bid for $750 mil at .9925; Bidder C bid for $800 mil at .9936; and last Bidder D bid for $600 mil at .9938.

Select one:

a. B will receive no T-bills

b. B will receive $200 mil T-bills

c. Final price will be .9940

d. Final price will be the average price of all prices being accepted

Now assume there is altogether $700 mil non-competitive bids also being submitted.

Select one:

a. B will receive no T-bills

But assume there is $250 mil non-competitive bids submitted

Select one:

a. C will receive no T-bills

b. B will receive $750 mil T-bills

c. Non-competitive bidders will pay .9936

d. There is not enough share for everyone, so, noncompetitive bidders who is not willing to pay higher price will receive nothing.

e. A and B of the above

b. B will receive $200 mil T-bills

c. Non-competitive bidders will pay .9940

d. Competitive bidders will pay the average price of all prices being accepted

e. There is not enough share for everyone, so, noncompetitive bidders who is not willing to pay higher price will receive nothing.