This quiz works best with JavaScript enabled. Home > Treasury Management > Treasury Management – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Trading in Foreign exchange refers to ..... A) Purchase/sale of FC in the market other than to cover merchant related transactions. B) Purchase/sale of FC in the market only to maintain square position at EOD. C) Purchase/sale of FC in the market related to merchant transactions only transactions. D) None of above. Show Answer Correct Answer: A) Purchase/sale of FC in the market other than to cover merchant related transactions. 2. It refers to the fluidity of business activities can be improved by constructive resolution of challenges and future trouble areas and stepping up to preempt liquidity or internal customer situations. A) Proactiveness. B) Teamwork. C) Transparency. D) Culture Knowledge. Show Answer Correct Answer: A) Proactiveness. 3. Statement 1:Risk means uncertainty, not necessarily losses.; Statement 2:Risk management is not necessarily about lowering risk. A) Statement 1 and 2 are False. B) Statement 1 is True but Statement 2 is False. C) Statement 1 is False but Statement 2 is True. D) Statement 1 and 2 are True. Show Answer Correct Answer: D) Statement 1 and 2 are True. 4. The combination of the floats associated with these inbound and out-bound check payments is the net float A) True. B) False. Show Answer Correct Answer: A) True. 5. It is made on a paper document, which has traditionally been physically routed from the payer to the payee, to the payee's bank, and then back to the payer's bank A) Bank check. B) Check payment. C) Bank draft. D) All of the above. Show Answer Correct Answer: B) Check payment. 6. Which among the statements is Step 2 of a card settlement process? A) Confirmation of validation. B) Card swipe, basic verification, and request for verification on acquiring the bank's network. C) Data request sent for validation. D) Purchase and presentation of card. Show Answer Correct Answer: B) Card swipe, basic verification, and request for verification on acquiring the bank's network. 7. One of the earliest forms of exchange of value, currency notes and coins are still used for corporate transactions in many parts of the world. One of the benefits of using cash is that credit risk is eliminated, as is possible float-the cash is available in physical form and can be used immediately. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: A) True. 8. Value Free Transfer (VFT) of securities means ..... A) Transfer of securities from one SGL account of an entity to another SGL or CSGL account of another entity with corresponding payment legin the books of RBI. B) Transfer of securities from one SGL account to another SGL or CSGL account combined with corresponding payment leg in the books of RBI. C) Transfer of securities from one SGL account to another SGL or CSGL account without corresponding payment legin the books of RBI. D) None of above. Show Answer Correct Answer: C) Transfer of securities from one SGL account to another SGL or CSGL account without corresponding payment legin the books of RBI. 9. In the context of global ACH payments, what is one limitation mentioned in the information? A) Limited remittance information. B) Availability of ACH systems worldwide. C) High transaction fees. D) Dependability in areas without ACH systems. Show Answer Correct Answer: A) Limited remittance information. 10. The cost, control, backup, access, and service providers, among other aspects, determine the location of ..... and infrastructure A) Centralized processes. B) Centralized systems. C) Centralized technology. D) Centralized authority. Show Answer Correct Answer: B) Centralized systems. 11. A company can have its bank receive and process checks on its behalf, which is termed a A) Lockbox service. B) Value date. C) Treasury box. D) Cannot be determined. Show Answer Correct Answer: A) Lockbox service. 12. The term Euro-currency market refers to ..... A) The market where the borrowing and lending of currencies take place outside the country of issue. B) The countries which have adopted Euro as their currency. C) The market in which Euro is exchanged for other currencies. D) None of above. Show Answer Correct Answer: A) The market where the borrowing and lending of currencies take place outside the country of issue. 13. It ensures the business is accurately tracking its daily sales and payments in an effective manner, while also having sufficient liquidity to meet both expected and unexpected financial obligations. A) Liquidity Management. B) Cash Management. C) Working Capital Management. D) Treasury Management. Show Answer Correct Answer: D) Treasury Management. 14. What is not the aim of Liquidity Management? A) Hedging the risk of interest rate changes. B) Prepare bank operational funds. C) Fulfill the bank's obligations. D) Comply with Bank Indonesia regulations. Show Answer Correct Answer: A) Hedging the risk of interest rate changes. 15. What sort of strategies can a Treasury Manager employ to ensure that the organization has sufficient liquidity? A) Optimizing cash reserves by investing idle cash in short-term instruments such as money market funds. B) Maximizing the organization's borrowing potential and capitalizing on long-term investments. C) Raising capital by issuing bonds, commercial paper and other financial instruments. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. It is the uncertainty regarding the financial performance caused by creditworthiness, market movements, availability of money, accounting and tax situations, and balance sheet changes. Related yet different elements exist to create financial risk for a firm. A) Operational Risk. B) Business Risk. C) Financial Risk. D) Credit Risk. Show Answer Correct Answer: C) Financial Risk. 17. Market instruments are available as over-the-counter or exchange-traded contracts. They require some form of credit risk limits from and with the other counterparty, collateralization, or up-front payment of premia. Market instruments could be price insurance, price-fixing, price variability, or combinations thereof. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: A) True. 18. The accounting staff generally handles the receipt and disbursement of cash, but the treasury staff needs to compile this information from all subsidiaries into short-range and long-range cash forecasts. A) Cash forecasting. B) Working capital management. C) Cash management. D) Investment management. Show Answer Correct Answer: A) Cash forecasting. 19. "Mail float" refers to the delay caused by transporting a check to the payee. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. 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 ..... A) Market-centralized location. B) Commercialized location. C) Decentralized location. D) Centralized location. Show Answer Correct Answer: D) Centralized location. ← PreviousNext →Related QuizzesTreasury Management Quiz 1Treasury Management Quiz 2Treasury Management Quiz 3Treasury Management Quiz 5Treasury Management Quiz 6Treasury Management Quiz 7Treasury Management Quiz 8Treasury Management Quiz 9Treasury Management Quiz 10Treasury Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books