For this discussion we explore the TreasuryDirect.gov website. It is useful site for obtaining actual Treasury securities. This website is also used for buying and selling Treasury securities. Note that to answer the discussion questions you don’t need to create an account or to buy/sell any Treasuries.
To answer the questions you will be using the links under the columns titled “Financial Institutions” and “Government”.Also note that your answers should be written in your own words. Do not copy the definitions from the website.
Why does the U.S. Treasury sell securities?
In your own words please describe the auction process. What is the difference between competitive bid and noncompetitive bid?
The market of Treasury bills is extremely active. How do T-bills are used in financial world? Make an example.
