Question

What is the Treasury Department’s role in the money markets?

Answer 1

The role of the treasury department is to control and manage the money. The department issues bonds in the money market and raises funds from the public by issuing them short term securties and in return provide them with the interest. At the same time, the treasury department knows how to manage the flow of the money into the ecosystem. Ina bank- Fixed Income or Money Market desk that is devoted to buying and selling interest bearing securities is also a form of treasury function.