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Treasury Management Quiz 5 (20 MCQs)

Quiz Instructions

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1. It is a management system that aims to optimize a company's liquidity, while also mitigating its financial, operational, and reputational risk.
2. It is an excellent measure for keeping track of the amount of debt that a company can potentially borrow, based on that portion of its accounts receivable, inventory, and fixed assets that are not cur-rently being used as collateral for an existing loan
3. This financial asset is usually a debt instrument sold by companies or the government to raise funds for short-term projects.
4. What are the objectives of banking relations management?
5. It is the type of financing when the legal holder of a bill (a commercial bill, such as a banker 's acceptance draft or commercial acceptance draft) transfers it to a funding entity (such as a bank) to obtain cash (at a value discounted for the interest for the period) prior to its maturity date
6. The primary advantage of using a lockbox service for check payments is faster processing times.
7. This can be a valuable tool for upgrading controls, procedures, and training, to mitigate the risk of such errors occurring again.
8. Apart from meeting the Reserve Requirements, what else is an indication that the bank is in liquid condition?
9. Which of the following is NOT objectives of managing cash in a bank?
10. The deployment of funds has to be done in right quantity such as the acquisition of fixed assets, purchase of raw material, payment of expenses like rent, salary, bills, interest and so forth. For this purpose, the treasury manager has to keep an eye on all receipts of funds and the application thereof.
11. The purpose of value dating in the context of check payments is to establish the payment recipient's identity.
12. The location of the ..... performing these roles could be different from the accounts and systems' locations
13. In conservative situations, the return objective should be lower in priority than principal protection and liquidity. Returns have to be quantified in annualized terms and measured with respect to the original currency of investment or in terms of the base currency of the company at a consolidated level. It is critical to evaluate the payoff profile of an investment under all scenarios.
14. If the exporter's bank is unwilling to make this payment, then it is called the .....
15. Cash position refers to .....
16. This area is appropriately referred to its role to monitor both the front and the back ends, with key control and reporting responsibilities.
17. It allows a company to avoid the physical movement of received checks to its bank
18. The DNA of treasurer's hats, except
19. It is the direct consequence of moves in various market factors. It is usually more easily quantifiable if one knows the extent of one 's exposures.
20. It is the purchase of a receivable or bill from the seller of goods or services, where the paying entity assumes responsibility for the collection of receivables and in some cases the credit risk as well.
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