Financial Institution Regulations

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL INSTITUTION REGULATIONS
Table of Contents
In Response to Question 1...............................................................................................................2
In Response to Question 2...............................................................................................................2
In Response to Question 3...............................................................................................................3
In Response to Question 4...............................................................................................................3
Reference.........................................................................................................................................4

2FINANCIAL INSTITUTION REGULATIONS
In Response to Question 1
The primary activities involved of the U.S Treasury Department was overall responsible for
managing and controlling the banking system. The U.S Treasury department plays an active role
in managing various sources of financial systems within the economy. The U.S Treasury
department handles the net revenue and the financial asset of the economy. The US Treasury
department is also held responsible for maintain and managing an efficient a proper economic
prosperity in the economy and for ensuring that the financial security of the economy of the U.S
is maintained in a proper and an effect way (Moore et al. 2015). The U.S. Treasury department
and the other state and local government raise funds through direct and indirect means. The
direct sources of revenue for the government body is in the form of taxes and duty fees and
charges and taxes collected by the local bodies. The indirect source of raising revenue for this
organization are through issuance of Treasury bonds and Treasury bills. The treasury bonds and
bills issued are government issued securities that help them raise funds for various activities of
the organizations (Zhao et al. 2018).
In Response to Question 2
The local U.S. Municipal Bond selected for the evaluation was the Utah State GO
(917542TW2) the risk and return characteristics were some of the important aspects that needs
to be evaluated while assessing the bond investment. The bond is an investment grade bond with
the credit rating of the bond as AAA+ that shows that the credit risk involved in the bond is far
less as compared to other types of investments or local municipality bonds (Liesen, 2015). The
bond taken into consideration is fully backed up by the credibility of the state government. The
bond can suffer from interest rate risk given that the yield curve of the economy changes and the