Question

In the tenders organised by the AOFM to issue Treasury bonds

Select one:

a. bidders bid quantities at the yield announced by AOFM.

b. bidders win if the yield in their bid is among the highest.

c. bidders win if the quantity in their bid is among the highest.

d. AOFM serves the bidders with the lowest yields first and then accepts highest yields up to the exhaustion of the quantity on issue.

Answer 1

when the tenders will be organised by the AOFM to issue the treasury bonds it will be serving the bidders with the lowest yield first and then it will be accepting the highest held upto the exhaustion of the quantity on the issue, so the issue is most beneficial.

All the other statements are false.

Correct answer will be option (d) AOFM serves the builder with the lowest yield first and then accepts highest yield upto the exhaustion of the quantity on the issue.