It is the office or governmental department in charge of keeping financial and economic stability through policies that control incomes and expenses, as well as to safeguard monetary reserves. In some countries, this function is carried out by the central bank. In the U.S. it is called the treasury Department and in the U.K. it is call the Exchequer.

In almost all cultures since antiquity there has been a governmental “department” in charge of keeping safe the most valuable things, usually precious metals such as gold in any of its shapes. Originally, this accumulation of valuable materials could have had an additional spiritual or religious association due to its value as a medium of exchange. As the commercial exchange got more sophisticated and money appeared, this “department” increased its importance and influence to maintain the state´s and/or government´s economic stability.

Nowadays, it has the function of acting as an intermediate entity to obtain funds and be able to finance the state through the issuance of bonds, which most times are the safest investments although their yield is not the highest, for example . The best example we find it in the US treasury bonds which are the medium of investment more required, in spite of receiving a low qualification from a credit rating agency.

The treasury issues different products depending on the term, being classified the following way:

•  Short term: Called treasury bills, or T-bills. They may be issued to 3, 6, 12 and 18 months. The yield it offers is attractive, caused by the difference between the purchase price and the amortization. 

• Medium term: They are called bonds, and its term is between 2 and 5 years. 

• Long term: They are treasury bonds but the term lies between 10, 15 and 30 years.