ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve’s primary responsibility is to keep the economy stable by managing the supply of money in circulation. The Department of the Treasury manages federal spending. It collects the government’s tax revenues, distributes its budget, issues its bonds, bills, and notes, and literally prints the money.

Detailed explanation-2: -Cash-and liquidity management is often described as treasury’s ‘primary duty. ‘ Essentially, a company needs to be able to meet its financial obligations as they fall due, i.e. to pay employees, suppliers, lenders and shareholders.

Detailed explanation-3: -U.S currency is produced by the Bureau of Engraving and Printing and U.S. coins are produced by the U.S. Mint. Both organizations are bureaus of the U.S. Department of the Treasury.

Detailed explanation-4: -1.3 Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest.

Detailed explanation-5: -July 27, 2022. Treasury management refers to a number of financial processes that help to optimize and control a business’s cash flow, liquidity and funding. Businesses can operate treasury management functions on their own or work with a financial institution.