16. Explain how a Treasury auction works in the United States. Can you find some
advantages stemming from this type of sale?
17. What is the "normal" or "typical" shape of the yield curve for T-bills? What
other shapes have been observed and why do you think these occur?
18. Who are the principal
of Treasury bills today? Please make a list of the
key factors that you believe motivate these investors to buy bills.
19. Explain why security dealers are essential to the smooth functioning of the
securities markets and especially the money market.