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Treasury Management Quiz 8 (30 MCQs)

Quiz Instructions

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1. The following statements are the reasons why firms generally stay put without hedging, except
2. Open position in Forex trading refers to .....
3. It is also called as ordinary shares are the shares where the payment of dividend is directly proportional to the profits earned by the organization.
4. To avoid the risk, the bank posts the amount of the deposit with a value date that is one or more days later than the book date
5. The lower the CCC, the more efficient are the firm 's financial operations, since the number of days of operations to be funded, and hence the working capital requirement, is lower.
6. Which document is typically used to initiate a bank transfer of funds?
7. What is not a Primary GWM component?
8. It is generally a score that indicates an independent agency 's opinion on the degree of credit risk of an issuer of debt, indicating the agency 's assessment of the intention and ability of the issuer to fulfil its debt obligations over a period of time. Ratings are typically established for short term (generally around a year or lower tenor) or long term,
9. If the treasurer can reliably predict how long it will take for the checks to clear, it is then possible to invest some of the cash that is available due to uncleared checks
10. As per RBI guidelines NOOPL should not exceed ..... of the total capital (Tier I and Tier II capital) of the bank.
11. Which among the statements is not a consideration of non-residents accounts?
12. What is a foreign exchange transaction with a delivery time of two weeks after the transaction date called?
13. In the context of remote disbursing, the "presentation float" is the period between depositing a check and fund availability.
14. A company can have its bank receive and process checks on its behalf, which is termed a lockbox service
15. It safeguards the existing assets, which calls for the prudent investment of funds while guarding against excessive losses on interest rates and foreign exchange positions.
16. The ..... can be defined as an investment asset whose value is derived from a contractual claim of what they represent.
17. What is Treasury Management?
18. The more decentralized the operations, the more important the need for a well-planned, tested, and relax contingency plan.
19. This metric is relevant only if the treasury department is responsible for the granting of customer credit.
20. What is the primary advantage of using online payment gateways in cash transfer procedures?
21. What is the primary advantage of using ACH payments?
22. Statement 1:Historical volatility. Measured by historical trends and data.; Statement 2:Exponential weighted moving average. Quoted and traded by traders in professional markets; it is commonly used in pricing options
23. Which is a strategy to fulfill short-term liquidity in banking?
24. It is refer to the activity of identifying risk and reaching a state of risk that is required to achieve desired objectives.
25. In a quote exchange rate, the currency that is to purchase with another currency is called .....
26. If Treasury is a cost centre or a benefits centre, whether it needs to be an active or passive Treasury, all aspects must be established in advance, and treasury strategy must specify the goals accordingly.
27. What is the primary purpose of providing wire transfer instructions to a bank?
28. While computing the Exchange position, the dealer will take into account .....
29. Implementing dual authorization for transfers is an example of preventive control in cash transfer procedures.
30. Given the Treasurer's duty to handle volatility, which includes balance sheet variability, the Treasurer's relations with the accounting systems and the financial controller are insignificant in the Treasury's smooth functioning and efficiency parameters.
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