Which of the Following Explains Why Both Competitive Bids and Noncompetitive

question 18

Multiple Choice

Which of the following explains why both competitive bids and noncompetitive bids, no one bidder is allowed to purchase more than 35% of any one issue?

• A)to make the bidding fair
• B)to make the bidding unfair
• C)to avoid the "winner's curse" due to the uncertainty over the value of the T-bills being auctioned
• D)to avoid the "loser's curse" due to the uncertainty over the value of the T-bills being auctioned

---

Definitions:

Cash-to-Cash Cycle

The time period between when a business pays cash to its suppliers for inventory and receives cash from its customers for goods or services sold.

Responsiveness

The ability of an organization or system to quickly and effectively adapt to changes or respond to customers.

ROA

Return on Assets, a financial metric indicating how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.