Preview Questions Treasury Manager | Role Specific Skill

Question 1: How can Treasury Managers ensure that liquidity is not impaired while managing excess cash?

Which action should you take?

Choose only one option

By investing in long-term, illiquid assets

By allocating funds to low-risk, liquid investments

By reducing reliance on short-term borrowing

By maintaining higher levels of cash reserves

Question 2: What is the primary factor a Treasury Manager must consider when assessing the risk of an investment portfolio?

Which action should you take?

Choose only one option

Macroeconomic conditions and interest rate fluctuations

Counterparty credit ratings and default risk

Investment duration and liquidity constraints

Portfolio diversification and asset class correlations

Question 3: Which of the following is a liquidity stress test that a Treasury Manager would typically use?

Which action should you take?

Choose only one option

A market crash causing a 20% drop in bond prices

A change in regulatory capital requirements

A scenario where the bank experiences a sudden increase in withdrawals

A rise in operational expenses leading to cash flow shortages

Question 4: Which instrument is most liquid for short-term cash deployment in Treasury Operations?

Which action should you take?

Choose only one option

Treasury bills

Municipal bonds

Callable bonds

Corporate bonds

Question 5: What is the primary risk in mismatched asset and liability durations?

Which action should you take?

Choose only one option

Regulatory risk

Credit risk

Interest rate risk

Operational risk

Question 6: How should Treasury report foreign exchange gains and losses on intercompany transactions in consolidated financial statements?

Which action should you take?

Choose only one option

They should be eliminated during the consolidation process

They should be reported as a separate line item in the income statement

They should be recorded as part of comprehensive income

They should be classified under operating income