This quiz works best with JavaScript enabled. Home > Treasury Management > Treasury Management – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Treasury Management Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the potential downside of initiating a wire transfer near the close of business? A) Delay in the value date imposed by the receiving bank. B) Increased foreign exchange conversion fees. C) Higher transaction fees from both issuing and receiving banks. D) Risk of insufficient funds to cover the transfer. Show Answer Correct Answer: A) Delay in the value date imposed by the receiving bank. 2. The evolution of public ownership has created a separation between ownership and management. A) False. B) True. Show Answer Correct Answer: B) True. 3. Which among the statements is not a statement consideration for multiple currency accounts? A) Segregation of customer's funds. B) Method of foreign currency payments. C) Possibility of creating intercompany loans. D) Timing of products and supplies payments. Show Answer Correct Answer: A) Segregation of customer's funds. 4. The primary advantage of remote deposit capture for check payments is eliminating the need for a physical bank branch. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. One golden rule that has worked for many companies is not to invest in any product that they themselves cannot price or break up. The more complicated the product, the opaquer its pricing generally is, and the greater the risk if the markets move against the investor. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: A) True. 6. What are the considerations for assessing creditworthiness of a customer? A) The customer's financial strength and credit scores. B) The customer's history for repayment of loans and financial obligations. C) The customer's track record for meeting payment terms and deadlines. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. "Swap Deal" transaction refers to ..... A) Bank buys and sells the specified FC simultaneously for same maturities. B) Bank buys and sells the specified FC simultaneously for different maturities. C) "Bank buys and sells the specified FC for another currency. D) None of above. Show Answer Correct Answer: B) Bank buys and sells the specified FC simultaneously for different maturities. 8. When a Dealer says he has Open position in a Currency, he means ..... A) Bank has made purchases of the concerned currency. B) Bank has no balance in the currency concerned. C) Bank has either overbought or oversold the currency concerned. D) None of above. Show Answer Correct Answer: C) Bank has either overbought or oversold the currency concerned. 9. A stock market is a platform for trading of company's shares at an agreed rate. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. An in-house bank does not requires a very high degree of expertise and high process orientation. The scales of the group's operations and financial transactions must also justify the in-house bank's investment and maintenance cost. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: B) False. 11. Which among the statements is Step 11 of a simple funds transfer using SWIFT? A) Paying bank sends cover payment instruction to Correspondent Bank. B) Paying bank sends direct payment instruction to Beneficiary Bank. C) Correspondent sends paying instruction to Beneficiary bank. D) Correspondent bank debits clearing Nostro account, credit bene bank vostro account. Show Answer Correct Answer: C) Correspondent sends paying instruction to Beneficiary bank. 12. What is the purpose of the "lifting fee" in wire transfer transactions? A) To expedite the transfer process. B) To calculate the net float. C) To reimburse the payer for fees. D) To cover the receiving bank's handling of the transaction. Show Answer Correct Answer: D) To cover the receiving bank's handling of the transaction. 13. ..... do not have any maturity date. A) Stocks. B) Bonds. Show Answer Correct Answer: A) Stocks. 14. It aimed at significantly reducing financial risks which includes currency risk management, commodity price risk management, interest rate risk management and other market risks management. A) Financial risk management. B) Cash Management. Show Answer Correct Answer: A) Financial risk management. 15. To mitigate interest rate or rollover risk, the investment must be treated as the highest possible tenor:that is, getting the money back when rates have moved higher. From a liquidity perspective, conservative investors should take the tenor of the investment as the maximum or maturity period, since it must be assumed that the investor will hold on to funds in a period of loosen liquidity, thereby locking in the amount for the full tenor. A) True. B) False. C) Maybe. D) Sometimes. Show Answer Correct Answer: B) False. 16. This is an arrangement where the importer's bank (the issuing bank) formally autho-rizes an obligation to pay the exporter's bank during a specific period of time, assuming that several documented conditions have been met A) Limited remittance information. B) Limited coverage. C) Confirmed letter of credit. D) Letter of credit. Show Answer Correct Answer: D) Letter of credit. 17. The treasurer should understand the implications of different methods of transferring cash to or from a company, since there are significant differences in the costs and cash flow speed of each one A) True. B) False. Show Answer Correct Answer: A) True. 18. What is one advantage of using local electronic payment systems like the Automated Clearing House (ACH)? A) Lower transaction fees for wire transfers. B) Faster international fund transfers. C) Elimination of value dating. D) High foreign exchange conversion fees. Show Answer Correct Answer: A) Lower transaction fees for wire transfers. 19. It is also focused on investment management by redeploying business cash flows efficiently and optimizing the risk-return profile of investible surplus. A) Funding Management. B) Cash Management. Show Answer Correct Answer: A) Funding Management. 20. It is the impact on the firm 's financials by the inability to provide any entity within the group money required, when it is required, where it is required, and in the form that it is required. Any delay will cause a financial disruption and sometimes a very steep increase in the cost of funding if not planned well. A) Liquidity Risk. B) Financial Risk. C) Factor Risk. D) Credit Risk. Show Answer Correct Answer: A) Liquidity Risk. ← PreviousNext →Related QuizzesTreasury Management Quiz 1Treasury Management Quiz 2Treasury Management Quiz 3Treasury Management Quiz 4Treasury Management Quiz 5Treasury Management Quiz 7Treasury Management Quiz 8Treasury Management Quiz 9Treasury Management Quiz 10Treasury Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books