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Treasury Management Quiz 2 (30 MCQs)

Quiz Instructions

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1. It is possible to outsource many Treasury tasks and functions, and many service providers provide reliable, flexible, and highly regulated levels of service across various levels.
2. It sends funds to the recipient's bank account more rapidly than any other form of payment, and is the standard form of international payment.
3. How much net open position in foreign currency is allowed by Bank Indonesia for banking?
4. Is made on a paper document, which has traditionally been physically routed from the payer to the payee, to the payee's bank, and then back to the payer's bank
5. Statement 1:Internal processes and their location is a strong determinant of risk and its measure. Operational risk and control are core element of the treasurer's responsibility, and the robustness of internal processes becomes a critical part of the firm's success ..... ; Statement 2:The ability not to bargain with customers and suppliers and to negotiate terms favorable to the firm is an important source or mitigation of risk.
6. Efficient forecasting of cash flows remains one of the determinants of a company's well-oiled financial machinery since the accuracy and timeliness of the forecasting process do not determine visibility and hence the ability to better manage the company's cash flows, borrowings, investments, and balance sheet.
7. An eligible entity, will in normal circumstances, be allowed to open and maintain only ..... SGL account.
8. Coordinating the process of consolidating and netting payments for increased efficiency
9. It is the uncertainty associated with the nonpayment of monies owed to a party by another party, for reasons of intent or financial or regulatory inability
10. The combination of the floats associated with these inbound and out-bound check payments is the
11. Exchange position refers to .....
12. In a letter of credit transaction, who is responsible for creating the letter of credit and has control over its terms and conditions?
13. Treasury Deals are normally done over phone or over dealing screen. The Deal terms are confirmed in writing by .....
14. If Bank Indonesia increases the Government Bond Repo interest rate, it means that BI is doing:
15. Which of the following is /are correct regarding the Open position in Forex?(i) position limits are prescribed currency wise as also for aggregate position in rupees (ii) there are separate limits for "day light"
16. What are the primary responsibilities of a Treasury Manager?
17. Investments in securities made to earn profits from short term price movements are classified under .....
18. One of the primary objectives of the treasury management is to manage financial risk to allow the enterprise to meet its financial obligations, as they fall due and also ensure predictable performance of the business.
19. An optimum level of liquidity should be maintained in the business, for the better and smooth functioning of the business, i.e. the company must be able to fulfil its financial obligation when they become due for payment, such as payment to suppliers, employees, creditors, etc.
20. Diversification involves moving the fi rm 's portfolio of risks to a targeted and presumably optimal mix of products across market factors to achieve a targeted degree of risk return. It is generally is used in line with the concept of not putting all your eggs in the same basket and the assumption that a well-diversified portfolio of risk will yield middle-of-line returns over a period of time, making the fi rm generally immune to large gains should the market move in its favor or large losses in case of adverse market action.
21. Regulations and the ability to raise funds with ease allow the company more and better alternatives to decide the type of capital to be raised. On the debt side, regulatory limits on exposure to single companies and groups, capital adequacy requirements for banks, and definitions of nonperforming assets, apart from restrictions on investment and overseas investors in locally issued debt, become determinants.
22. It is the change in the financials of the firm owing to the change in the volatility of a given market factor. Wherein vega is the used to denote the sensitivity of the value of the firm or the portfolio to changes in volatility.
23. Statement 1:Industry practices and competitive action impact the nature of risk that the company faces ..... ; Statement 2:The ability not to bargain with customers and suppliers and to negotiate terms favorable to the firm is an important source or mitigate of risk.
24. A rights issue is an issue of an additional set of shares to existing shareholders (based on their interest). This is used to reduce the impact of dilution and also to try to extract more capital from existing shareholders without having to involve a new set of investors or banks for borrowing.
25. Process notes decreased transparency gives rise to error and improvement opportunities, thereby increasing control and water tightness of the process.
26. The customer 's inability to pay due to financial stress and liquidity issues at its end directly impacts the credit and receivables for the firm, delaying the availability of cash and putting added pressure on the Treasurer to sustain the operations while waiting for the funds to come in.
27. From an accounting standpoint, the reporting and fi ling of returns that the companies and subsidiaries perform in each location or jurisdiction where they are present provides an interesting challenge and pits the accounting financials against the value that the business actually believes it has generated.
28. Exchange position is also known as .....
29. The time between when the check is deposited and when it is available to the recipient is
30. A ..... is a place where two parties are involved in transaction of goods and services in exchange of money.
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