lOMoAR cPSD| 32110785
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
SECTION A
QUESTION 1
Treasury management is executed
in any business, irrespective of its
size, structure, or industry. Which
of the following activities does
not fall directly under the
corporate treasury management
functions in business?
a. The management of cash, liquidity,
and banking relations.
b. The management of the cost of
capital, capital structure and dividend
pay-out.
c. The management of financial, operational,
and strategic risks.
d. Management of cash forecasting, cash
surpluses and cash deficits.
Circle the correct option below:
1. a and b
2. a and c
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
3. b and c
4. a and d
Corporate treasury management
mainly deals with:
• Cash management (cash
flow, surpluses, deficits,
forecasting)
• Liquidity management
• Banking relations
• Short-term investments
and financing It does not
directly handle:
• Cost of capital, capital
structure, dividend policy
→ these belong to
corporate finance.
• Operational and strategic
risks → these belong to
risk
management/enterprise
risk management, not core
treasury.
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
QUESTION 2
Which of the following statements below
are correct about the interest rate swaps?
An interest rate swap involves
counterparties who want to exchange …
a. a floating rate commitment for a
fixed rate.
b. long-term debt for equity.
c. short-term debt for long-term debt.
d. fixed assets with current assets
Circle the correct option below:
1. a
2. a and c
3. a and b
4. b and d
An interest rate swap is a
financial derivative where two
parties exchange cash flows
based on different interest rate
structures.
• Typically, one party pays a
fixed rate while receiving a
floating rate, and the other
does the opposite.
Downloaded by Vincent Cosmas ()
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
SECTION A
QUESTION 1
Treasury management is executed
in any business, irrespective of its
size, structure, or industry. Which
of the following activities does
not fall directly under the
corporate treasury management
functions in business?
a. The management of cash, liquidity,
and banking relations.
b. The management of the cost of
capital, capital structure and dividend
pay-out.
c. The management of financial, operational,
and strategic risks.
d. Management of cash forecasting, cash
surpluses and cash deficits.
Circle the correct option below:
1. a and b
2. a and c
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
3. b and c
4. a and d
Corporate treasury management
mainly deals with:
• Cash management (cash
flow, surpluses, deficits,
forecasting)
• Liquidity management
• Banking relations
• Short-term investments
and financing It does not
directly handle:
• Cost of capital, capital
structure, dividend policy
→ these belong to
corporate finance.
• Operational and strategic
risks → these belong to
risk
management/enterprise
risk management, not core
treasury.
Downloaded by Vincent Cosmas ()
, lOMoAR cPSD| 32110785
QUESTION 2
Which of the following statements below
are correct about the interest rate swaps?
An interest rate swap involves
counterparties who want to exchange …
a. a floating rate commitment for a
fixed rate.
b. long-term debt for equity.
c. short-term debt for long-term debt.
d. fixed assets with current assets
Circle the correct option below:
1. a
2. a and c
3. a and b
4. b and d
An interest rate swap is a
financial derivative where two
parties exchange cash flows
based on different interest rate
structures.
• Typically, one party pays a
fixed rate while receiving a
floating rate, and the other
does the opposite.
Downloaded by Vincent Cosmas ()
