How does the Treasury use the primary market to obtain adequate funding?

Question:

How does the Treasury use the primary market to obtain adequate funding?

Treasury

Treasury in simple terms is a department in the government, charged with functions of raising funds through various means like tax revenue, non tax revenue e.g. dividends interest and also raising funds by issuing treasury instruments in the market.

Answer and Explanation: 1

Money and capital markets are of two types primary and secondary

In primary market in issuers issue their instruments for public, when public or institutions buy these instruments, the funding goes to the issuer. Similarly the treasury issues its instruments in the primary market and when public or institutions buy these, treasury gets the fund.


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What Are Treasury Bonds? - Definition & Rates

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Chapter 6 / Lesson 7
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