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Treasury Management Quiz 3 (30 MCQs)

Quiz Instructions

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1. Trading in Foreign exchange refers to .....
2. It refers to the fluidity of business activities can be improved by constructive resolution of challenges and future trouble areas and stepping up to preempt liquidity or internal customer situations.
3. Statement 1:Risk means uncertainty, not necessarily losses.; Statement 2:Risk management is not necessarily about lowering risk.
4. The combination of the floats associated with these inbound and out-bound check payments is the net float
5. It 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
6. Which among the statements is Step 2 of a card settlement process?
7. One of the earliest forms of exchange of value, currency notes and coins are still used for corporate transactions in many parts of the world. One of the benefits of using cash is that credit risk is eliminated, as is possible float-the cash is available in physical form and can be used immediately.
8. Value Free Transfer (VFT) of securities means .....
9. In the context of global ACH payments, what is one limitation mentioned in the information?
10. The cost, control, backup, access, and service providers, among other aspects, determine the location of ..... and infrastructure
11. A company can have its bank receive and process checks on its behalf, which is termed a
12. The term Euro-currency market refers to .....
13. It ensures the business is accurately tracking its daily sales and payments in an effective manner, while also having sufficient liquidity to meet both expected and unexpected financial obligations.
14. What is not the aim of Liquidity Management?
15. What sort of strategies can a Treasury Manager employ to ensure that the organization has sufficient liquidity?
16. It is the uncertainty regarding the financial performance caused by creditworthiness, market movements, availability of money, accounting and tax situations, and balance sheet changes. Related yet different elements exist to create financial risk for a firm.
17. Market instruments are available as over-the-counter or exchange-traded contracts. They require some form of credit risk limits from and with the other counterparty, collateralization, or up-front payment of premia. Market instruments could be price insurance, price-fixing, price variability, or combinations thereof.
18. The accounting staff generally handles the receipt and disbursement of cash, but the treasury staff needs to compile this information from all subsidiaries into short-range and long-range cash forecasts.
19. "Mail float" refers to the delay caused by transporting a check to the payee.
20. The value-added Treasury centre (TC++) concept takes off from the basic TC, forecasting, risk management decision making, investment decisions, funding and liquidity sourcing and intercompany funding, systems, control, and reporting all moving to a .....
21. It is a management system that aims to optimize a company's liquidity, while also mitigating its financial, operational, and reputational risk.
22. It is an excellent measure for keeping track of the amount of debt that a company can potentially borrow, based on that portion of its accounts receivable, inventory, and fixed assets that are not cur-rently being used as collateral for an existing loan
23. This financial asset is usually a debt instrument sold by companies or the government to raise funds for short-term projects.
24. What are the objectives of banking relations management?
25. It is the type of financing when the legal holder of a bill (a commercial bill, such as a banker 's acceptance draft or commercial acceptance draft) transfers it to a funding entity (such as a bank) to obtain cash (at a value discounted for the interest for the period) prior to its maturity date
26. The primary advantage of using a lockbox service for check payments is faster processing times.
27. This can be a valuable tool for upgrading controls, procedures, and training, to mitigate the risk of such errors occurring again.
28. Apart from meeting the Reserve Requirements, what else is an indication that the bank is in liquid condition?
29. Which of the following is NOT objectives of managing cash in a bank?
30. The deployment of funds has to be done in right quantity such as the acquisition of fixed assets, purchase of raw material, payment of expenses like rent, salary, bills, interest and so forth. For this purpose, the treasury manager has to keep an eye on all receipts of funds and the application thereof.
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