This quiz works best with JavaScript enabled. Home > Treasury Management > Treasury Management – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the statements is Step 4 of a real-time gross settlement (RTGS) operation? A) Seller sends invoice. B) Paying bank sends payment instructions to clearing. C) Clearing system credits bene bank vostro account and sends payment instruction to Beneficiary Bank. D) Clearing system debits paying bank vostro. Show Answer Correct Answer: B) Paying bank sends payment instructions to clearing. 2. An in-house bank requires a very high degree of expertise and ..... orientation. The scales of the group's operations and financial transactions must also justify the in-house bank's investment and maintenance cost. A) Rare process. B) Significant process. C) High process. D) Low process. Show Answer Correct Answer: C) High process. 3. The four aspects that need to be consider in treasury management activities are: A) Asset, liability, liquidity, and risk. B) Amount, currency, time and place. C) Interest rate, currency, risk, and amount. D) Amount, currency, rate, and time. Show Answer Correct Answer: B) Amount, currency, time and place. 4. The basic Treasury centre (TC) model adds value parallel to an SSC. Here, more complicated activities are taken up, and the TC comes under the Treasurer's direct ambit. Cash concentration, trade operations, netting, decentralized bank relationship management, financing decisions, and FX decisions are made in the basic TC. Also, account ownership may reside with the TC. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: B) False. 5. It is refers to assess the Treasury's functioning, similar to a fitness test for the human body, to identify potential pain points and prevent any significant potential breakdown A) Treasury Design. B) Treasury Fitness. C) Treasury Culture. D) Treasury Hats. Show Answer Correct Answer: B) Treasury Fitness. 6. Which of the following statements best describe liquidity management in a Banks? A) To ensure that bank can be met its long-term obligations when it's become due. B) Have sufficient liquidity at all time to meet its current and future requirements. C) Liquidity is essential in all banks to compensate for unexpected balance sheet fluctuations only. D) None of above. Show Answer Correct Answer: B) Have sufficient liquidity at all time to meet its current and future requirements. 7. Which among the statemens is not true on providing liquidity to the firm? A) Achieved by determining the correct liquidity sources. B) Providing the company with the ability to transfer cash. C) Increasing reliance on market and external sources. D) Raising the visibility of the money of the company. Show Answer Correct Answer: C) Increasing reliance on market and external sources. 8. It is the capital source in many countries and suppliers of useful investment products and networks (funds, investment banks, other), wherein the Treasury's relationship with this external stakeholder for both origination and investment is directed under Treasury responsibilities. A) Financial Mediators. B) Financial Mergers. C) Financial Regulations. D) Financial Institutions. Show Answer Correct Answer: D) Financial Institutions. 9. In general, the Corporate Treasury manages the organization's liquidity risks, financial risks, banking relationships, working capital and supporting management and business units. A) True. B) False. Show Answer Correct Answer: A) True. 10. What is the purpose of fund transfer pricing? A) Determining the cost of creating liquidity. B) Quantifying the cost of providing financing services. C) Measuring income generated from investments. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. The industries require the investors for raising the funds and the investors require the industries for investing its money and earning the returns from them. A) Easy Access. B) Risk sharing. Show Answer Correct Answer: A) Easy Access. 12. It is important to have a broad set of controls that help to ensure that transactions are appropriate A) True. B) False. Show Answer Correct Answer: A) True. 13. Treasury Management includes ..... and so it ensures that there are an effective collection and payment system in the organization. A) Cash Management. B) Liquidity Management. Show Answer Correct Answer: A) Cash Management. 14. What is the purpose of cash flow analysis? A) Assessing liquidity position of an organization. B) Analyzing borrowing and investment requirements. C) Forecasting near-term liquidity needs. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. ACH payments are widely available globally, making them the most dependable means of transferring funds worldwide. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 16. Which among the statements is not true about lowering the cost of funding and the cost of capital? A) Searching for the right sources of capital. B) Achieving an acceptable capital structure. C) Targeting and achieving an appropriate credit rating. D) Searching for disruptive opportunities by the use of less foreign capital. Show Answer Correct Answer: D) Searching for disruptive opportunities by the use of less foreign capital. 17. The financial market performs the function of price discovery of the different financial instruments which are traded between the buyers and the sellers on the financial market. A) Price Determination. B) Funds Mobilization. Show Answer Correct Answer: A) Price Determination. 18. You are posted as Dealer in Forex Treasury. On a day your branches have reported purchase transactions which exceed the sale transactions. You are said to be in ..... A) Square position. B) Over sold position. C) Overbought position. D) None of above. Show Answer Correct Answer: C) Overbought position. 19. It is an electronic network for the processing of both credit and debit transactions within the United States and Canada A) Remote deposit capture. B) Remote disbursement. C) Wire Transfer. D) ACH Payments. Show Answer Correct Answer: D) ACH Payments. 20. An individual owning one or more than one share of an organization is called a board of directors. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. ← PreviousNext →Related QuizzesTreasury Management Quiz 1Treasury Management Quiz 2Treasury Management Quiz 3Treasury Management Quiz 4Treasury Management Quiz 5Treasury Management Quiz 6Treasury Management Quiz 7Treasury Management Quiz 8Treasury Management Quiz 9Treasury Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books