This quiz works best with JavaScript enabled. Home > Finance > Treasury Management > Treasury Management – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Treasury Management also aims at ensuring the effective utilization of the firm's resources, to reduce the operating costs and also prevent liquidity shortage in the coming time. A) Risk Management. B) Optimum utilization of resources. Show Answer Correct Answer: B) Optimum utilization of resources. 2. Following are responsibilities of treasury department in a bank's, EXCEPT: A) To constantly seek profitable investments for the bank's excess funds. B) To manage the fixed assets of the bank. C) To ensure that the bank meets the minimum SRR imposed by the central bank. D) To minimize exposure to interest rate risks. Show Answer Correct Answer: B) To manage the fixed assets of the bank. 3. This market is used for lending or borrowing money for the long term. A) Capital Market. B) Stocks Market. Show Answer Correct Answer: A) Capital Market. 4. Securities classified under the category "Held for Trading" are to be sold within ..... days A) 60. B) 120. C) 90. D) None of above. Show Answer Correct Answer: C) 90. 5. It is the uncertainty associated with the actual activity of doing business for a going concern. These risks are largely determined by the business managers in a firm and on-the-ground intelligence in global companies A) Business Risk. B) Market Risk. C) Liquidity Risk. D) Operational Risk. Show Answer Correct Answer: A) Business Risk. 6. What are Bank Indonesia's requirements for Primary Statutory Reserves? A) 9%. B) 6%. C) 4%. D) 12%. Show Answer Correct Answer: A) 9%. 7. A market where individuals invest for a longer duration i.e. more than a year is called as capital market. A) CAPITAL MARKET. B) FINANCIAL MARKET. Show Answer Correct Answer: A) CAPITAL MARKET. 8. Financial markets provide the channel through which the new savings of the investors flow in the country which aid in the capital formation of the country. A) Easy Access. B) Capital Formation. Show Answer Correct Answer: B) Capital Formation. 9. Independent verification of documents helps verify the accuracy of cash transfer documentation. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 10. ..... are those assets with fixed or determinable payments A) Loans and Receivables. B) Bonds. Show Answer Correct Answer: A) Loans and Receivables. 11. The investment policy of a Bank should contain ..... (i) Permissible investments (ii) SLR and Non-SLR investments (iii) Private placement A) (i). B) (i) (ii) (iii). C) (i) (ii). D) None of above. Show Answer Correct Answer: B) (i) (ii) (iii). 12. Eliminates the need to physically transfer check payments to the local bank for deposit. A) ACH Payments. B) Wire Transfer. C) Remote deposit capture. D) Debit Payments. Show Answer Correct Answer: C) Remote deposit capture. 13. If a company receives large volumes of cash, it is usually more secure to hire a professional money transporter to move the cash to the bank on behalf of the company A) True. B) False. Show Answer Correct Answer: A) True. 14. The advent of great banking platforms and outsourced solutions has also dramatically decreased leveraging systems and technology. A) Sometimes. B) True. C) Maybe. D) False. Show Answer Correct Answer: D) False. 15. Which among the statements is Step 10 of a clearing process of cheques? A) Debit to payer's account. B) Cheque deposit. C) Cheques presented to the clearing. D) Confirmation of funds available & return of bounced cheques. Show Answer Correct Answer: D) Confirmation of funds available & return of bounced cheques. 16. The financial ..... can be defined as an investment asset whose value is derived from a contractual claim of what they represent A) Assets. B) Liabilities. Show Answer Correct Answer: A) Assets. 17. What are debt securities issued by regional governments or regional government-owned enterprises called? A) Retail Bonds. B) Municipal Bonds. C) Corporate Bonds. D) Convertible Bonds. Show Answer Correct Answer: B) Municipal Bonds. 18. One of the main functions of treasurymanagement is to determine the proper levels of cash or cash equivalents to allow businesses the ability to meet their financial obligations. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. ..... have different roles to play which include price determination, funds mobilization, risk sharing, easy access, liquidity, capital formation and reduction in transaction costs and provision of the required information, etc. A) FINANCIAL SYSTEM. B) FINANCIAL MARKETS. Show Answer Correct Answer: B) FINANCIAL MARKETS. 20. Outsourcing cannot always be proven to provide significant cost savings since the third party must also build an adequate profit into its service fee. A) True. B) False. Show Answer Correct Answer: A) True. 21. Your Bank is maintaining a Nostro account with Deutsche Bank, Hamburg in Euro. An export bill for Euro 25, 000/-sent for collection on 21.01.23 is realised and Nostro account is credited on 10.02.2003. This date is known as ..... A) Payment date. B) Value date. C) Realised date. D) None of above. Show Answer Correct Answer: B) Value date. 22. What is the purpose of liquidity planning? A) Assessing the organization's current liquidity position. B) Identifying sources of short-term funds to meet near-term obligations. C) Preparing for contingencies such as extended market downturns. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. 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 decentralized location. A) Sometimes. B) Maybe. C) True. D) False. Show Answer Correct Answer: D) False. 24. Treasury management is the management of all financial affairs of the business such as raising funds for the business from various sources, currency management, cash flows and various strategies and procedures of corporate finance. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 25. *This type of financial asset is the ..... reserved with the organization. A) Bonds. B) Cash or cash equivalent. Show Answer Correct Answer: B) Cash or cash equivalent. 26. Managing cash well is crucial for businesses of all sizes. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 27. These payments include direct deposit payroll, Social Security payments, tax refunds, and the direct payment of business-to-business and consumer bills. A) Lifting fee payment. B) Wire transfer. C) Debit payment. D) ACH Payments. Show Answer Correct Answer: D) ACH Payments. 28. What are the key components of an effective financial risk management framework? A) Identifying financial risks and establishing risk appetite. B) Monitoring and measuring financial risks. C) Implementing appropriate risk mitigation controls. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. It is the presumed date of receipt of the cash by the bank A) Value date. B) Lockbox. C) Post-date. D) None of the above. Show Answer Correct Answer: A) Value date. 30. The purpose of segregation of duties in cash transfer controls is to prevent fraud and errors. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← PreviousNext →Related QuizzesFinance QuizzesTreasury Management Quiz 1Treasury Management Quiz 2Treasury Management Quiz 3Treasury Management Quiz 4Treasury Management Quiz 5Treasury Management Quiz 7Treasury Management Quiz 8Treasury Management Quiz 9Treasury Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books