This quiz works best with JavaScript enabled. Home > Treasury Management > Treasury Management – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the statements is not a consideration of non-residents accounts? A) Status with domestic tax authorities. B) Location of incorporation. C) Registration with local industry bodies. D) Netting capability and regulations. Show Answer Correct Answer: D) Netting capability and regulations. 2. What is a foreign exchange transaction with a delivery time of two weeks after the transaction date called? A) Spot. B) Forward. C) Swap. D) Future. Show Answer Correct Answer: B) Forward. 3. In the context of remote disbursing, the "presentation float" is the period between depositing a check and fund availability. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 4. A company can have its bank receive and process checks on its behalf, which is termed a lockbox service A) True. B) False. Show Answer Correct Answer: A) True. 5. 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. A) Sales and Marketing Department. B) Human Resource Department. C) Treasury Management. D) Maintenance Department. Show Answer Correct Answer: C) Treasury Management. 6. The ..... can be defined as an investment asset whose value is derived from a contractual claim of what they represent. A) Financial assets. B) Liquid assets. Show Answer Correct Answer: A) Financial assets. 7. What is Treasury Management? A) The process of determining organizational goals and objectives to optimize investment of idle cash or money. B) Making sure the organization complies with regulations and financial standards. C) Establishing cash flow policies and performing cash flow analysis to meet the organization's goals. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. The more decentralized the operations, the more important the need for a well-planned, tested, and relax contingency plan. A) True. B) Maybe. C) False. D) Sometimes. Show Answer Correct Answer: C) False. 9. This metric is relevant only if the treasury department is responsible for the granting of customer credit. A) Bad debts as a percentage of sales. B) Borrowing base usage percentage. C) Accuracy of its cash forecast. D) Percentage of sales. Show Answer Correct Answer: A) Bad debts as a percentage of sales. 10. What is the primary advantage of using online payment gateways in cash transfer procedures? A) Slower transaction processing. B) Higher transaction fees. C) Enhanced security and convenience. D) Limited payment options. Show Answer Correct Answer: C) Enhanced security and convenience. 11. What is the primary advantage of using ACH payments? A) Fast international transactions. B) Low transaction costs. C) Secure handling of cash. D) Direct payment from credit cards. Show Answer Correct Answer: B) Low transaction costs. 12. 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 A) Statements 1 and 2 are False. B) Statement 1 is false but Statement 2 is True. C) Statement 1 is True but Statement 2 is False. D) Statements 1 and 2 are True. Show Answer Correct Answer: C) Statement 1 is True but Statement 2 is False. 13. Which is a strategy to fulfill short-term liquidity in banking? A) Selling securities or bonds. B) Selling some bank shares to the public. C) Increase deposit interest. D) Doing capital increase. Show Answer Correct Answer: A) Selling securities or bonds. 14. It is refer to the activity of identifying risk and reaching a state of risk that is required to achieve desired objectives. A) Risk Management. B) Risk Identification. C) Risk Evaluation. D) Risk Mitigation. Show Answer Correct Answer: A) Risk Management. 15. In a quote exchange rate, the currency that is to purchase with another currency is called ..... A) Quote currency. B) Base currency. C) Local currency. D) None of above. Show Answer Correct Answer: B) Base currency. 16. 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. A) Sometimes. B) True. C) False. D) Maybe. Show Answer Correct Answer: B) True. 17. What is the primary purpose of providing wire transfer instructions to a bank? A) To request a foreign exchange conversion. B) To expedite the wire transfer process. C) To determine the payment recipient's identity. D) To avoid transaction fees imposed by banks. Show Answer Correct Answer: B) To expedite the wire transfer process. 18. While computing the Exchange position, the dealer will take into account ..... A) All purchases/sales made on Forward basis. B) All purchases/sales made on Spot basis only. C) All purchases/sales made on Spot or Forward basis. D) None of above. Show Answer Correct Answer: C) All purchases/sales made on Spot or Forward basis. 19. Implementing dual authorization for transfers is an example of preventive control in cash transfer procedures. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. 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. A) Maybe. B) False. C) True. D) Sometimes. 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books