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Treasury Management Quiz 4 (30 MCQs)

Quiz Instructions

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1. The purpose of value dating in the context of check payments is to establish the payment recipient's identity.
2. The location of the ..... performing these roles could be different from the accounts and systems' locations
3. In conservative situations, the return objective should be lower in priority than principal protection and liquidity. Returns have to be quantified in annualized terms and measured with respect to the original currency of investment or in terms of the base currency of the company at a consolidated level. It is critical to evaluate the payoff profile of an investment under all scenarios.
4. If the exporter's bank is unwilling to make this payment, then it is called the .....
5. Cash position refers to .....
6. This area is appropriately referred to its role to monitor both the front and the back ends, with key control and reporting responsibilities.
7. It allows a company to avoid the physical movement of received checks to its bank
8. The DNA of treasurer's hats, except
9. It is the direct consequence of moves in various market factors. It is usually more easily quantifiable if one knows the extent of one 's exposures.
10. It is the purchase of a receivable or bill from the seller of goods or services, where the paying entity assumes responsibility for the collection of receivables and in some cases the credit risk as well.
11. What is the potential downside of initiating a wire transfer near the close of business?
12. The evolution of public ownership has created a separation between ownership and management.
13. Which among the statements is not a statement consideration for multiple currency accounts?
14. The primary advantage of remote deposit capture for check payments is eliminating the need for a physical bank branch.
15. One golden rule that has worked for many companies is not to invest in any product that they themselves cannot price or break up. The more complicated the product, the opaquer its pricing generally is, and the greater the risk if the markets move against the investor.
16. What are the considerations for assessing creditworthiness of a customer?
17. "Swap Deal" transaction refers to .....
18. When a Dealer says he has Open position in a Currency, he means .....
19. A stock market is a platform for trading of company's shares at an agreed rate.
20. An in-house bank does not requires a very high degree of expertise and high process orientation. The scales of the group's operations and financial transactions must also justify the in-house bank's investment and maintenance cost.
21. Which among the statements is Step 11 of a simple funds transfer using SWIFT?
22. What is the purpose of the "lifting fee" in wire transfer transactions?
23. ..... do not have any maturity date.
24. It aimed at significantly reducing financial risks which includes currency risk management, commodity price risk management, interest rate risk management and other market risks management.
25. To mitigate interest rate or rollover risk, the investment must be treated as the highest possible tenor:that is, getting the money back when rates have moved higher. From a liquidity perspective, conservative investors should take the tenor of the investment as the maximum or maturity period, since it must be assumed that the investor will hold on to funds in a period of loosen liquidity, thereby locking in the amount for the full tenor.
26. This is an arrangement where the importer's bank (the issuing bank) formally autho-rizes an obligation to pay the exporter's bank during a specific period of time, assuming that several documented conditions have been met
27. The treasurer should understand the implications of different methods of transferring cash to or from a company, since there are significant differences in the costs and cash flow speed of each one
28. What is one advantage of using local electronic payment systems like the Automated Clearing House (ACH)?
29. It is also focused on investment management by redeploying business cash flows efficiently and optimizing the risk-return profile of investible surplus.
30. It is the impact on the firm 's financials by the inability to provide any entity within the group money required, when it is required, where it is required, and in the form that it is required. Any delay will cause a financial disruption and sometimes a very steep increase in the cost of funding if not planned well.
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