This quiz works best with JavaScript enabled. Home > Finance > Treasury Management > Treasury Management – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 10 (21 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Statement 1:By reducing the likelihood and potential costs of distress, a good risk management process can move the firm towards becoming neutral to performances of its key market and credit environments and hence towards a better rating.; Statement 2:A better rating would imply decreased ability to leverage and cheaper sources of funding, leading to an overall lowering of the cost of capital. A) Statement 1 and 2 are False. B) Statement 1 is False but Statement 2 is True. C) Statement 1 is True but Statement 2 is False. D) Statement 1 and 2 are True. Show Answer Correct Answer: C) Statement 1 is True but Statement 2 is False. 2. The transactional and operational element of cash management and money movement, except A) Settlement and execution of cash f ow and cross-border transactions. B) Execution of trade-related transactions, such as letters of credit and bank guarantees. C) Establishing an appropriate forecasting process for cash flows to enable poor planning. D) None of above. Show Answer Correct Answer: C) Establishing an appropriate forecasting process for cash flows to enable poor planning. 3. Many firms have implemented a ..... corporate hierarchy. A) One-tier. B) Three-tier. C) Two-tier. D) None of the above. Show Answer Correct Answer: C) Two-tier. 4. It refers on creating the right processes, structures, and approaches at the right place with the right infrastructure and of course the right people A) Treasury Design. B) Treasury Hats. C) Treasury Culture. D) Treasuty Fitness. Show Answer Correct Answer: A) Treasury Design. 5. What is the purpose of capital management? A) Developing strategies to meet capital requirements. B) Monitoring and tracking the organization's capital expenses. C) Managing debt levels and evaluating capital investments. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. It manage the financial risk to allow the enterprise to meet its financial obligations, as they fall due and also ensure predictable performance of the business. A) Risk Management. B) Optimum utilization of resources. Show Answer Correct Answer: A) Risk Management. 7. Which among the statements is not a money transfer mechanism? A) Cheques and drafts. B) Bills and negotiable instruments. C) Gold bar deposits. D) Electronic funds transfer. Show Answer Correct Answer: C) Gold bar deposits. 8. Stress Testing carried out by banks to measure their liquidity conditions within a period of 30 days, namely: A) Liquidity Coverage Ratio. B) Net Stable Funding Ratio. C) High Quality Liquid Assets. D) Ratio Intermediary Macroprudential. Show Answer Correct Answer: A) Liquidity Coverage Ratio. 9. Which among the statements is Step 6 of a ordinary value payments? A) Paying bank batches all transactions into a single file and sends to the clearing system. B) Clearing system credits bene bank Vostro account, sends a file of all payment instructions to Beneficiary Bank. C) Bank debits clearing Nostro account credits customer account. D) Paying Bank Debits customer for total amount, credits clearing Nostro account. Show Answer Correct Answer: C) Bank debits clearing Nostro account credits customer account. 10. This financial asset is an agreement between an investor (here, company) and a bank institution in which the customer (Company) keep a set amount of money deposited in the bank for the agreed term in exchange for a guaranteed rate of interest. A) Certificate of Deposit (CD). B) Bonds. Show Answer Correct Answer: A) Certificate of Deposit (CD). 11. Treasury Culture involves finance and job-specific items that are core to the functioning of a well-rounded Treasury team, except A) Written Communication. B) Accounting. C) Business. D) Regulatory. Show Answer Correct Answer: A) Written Communication. 12. The four major currencies in the world are free to float against each other except one of the following. Identify. A) EURO. B) USD. C) Spanish Peso. D) None of above. Show Answer Correct Answer: C) Spanish Peso. 13. You have entered into a Forward Purchase contract with your exporter for USD 50, 000/-for two months. Delivery is in April'23. This will enter into the exchange position of Delaers' book on ..... A) The date our Nostro account is credited with the proceeds of the export bill. B) The date of entering into the Forward contract. C) The date of tendering of export documents for purchase/negotiation/discount. D) None of above. Show Answer Correct Answer: B) The date of entering into the Forward contract. 14. Acronym CSGL stands for ..... A) Conditional Subsidiary General ledger. B) Constituent Subsidiary General Ledger. C) Constituent separate general ledger. D) None of above. Show Answer Correct Answer: B) Constituent Subsidiary General Ledger. 15. Treasury management drives value creation through maximizing cash liquidity for companies that often have fluctuating cash flow and needs. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. Among the statemets are the qualities of treasury culture, except A) Communicative. B) Teamwork. C) Proactiveness. D) Transparency. Show Answer Correct Answer: A) Communicative. 17. It ensures that there are an effective collection and payment system in the organization. A) CASH MANAGEMENT. B) TREASURY MANAGEMENT. Show Answer Correct Answer: A) CASH MANAGEMENT. 18. When a company has written a large volume of checks that have not yet cleared, the available cash balance shown by the company's bank will be larger than the company's ledger balance A) False. B) True. Show Answer Correct Answer: B) True. 19. Which of the following is NOT a common method of cash transfer? A) Electronic funds transfer (EFT). B) Cash in hand. C) Postal money order. D) Bartering goods. Show Answer Correct Answer: D) Bartering goods. 20. It is calculated using a monthly earnings credit rate, multiplied by the average collected balance in the account for the month A) Earnings allowance. B) Allowance. C) Credit allowance. D) Earnings credit allowance. Show Answer Correct Answer: D) Earnings credit allowance. 21. Treasury management is a management system that aims to optimize a company's liquidity while also mitigating its financial, operational and reputational risk. A) False. B) True. Show Answer Correct Answer: B) True. ← PreviousRelated QuizzesFinance QuizzesTreasury Management Quiz 1Treasury Management Quiz 2Treasury Management Quiz 3Treasury Management Quiz 4Treasury Management Quiz 5Treasury Management Quiz 6Treasury Management Quiz 7Treasury Management Quiz 8Treasury Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books