DRIVE-SPRING
2014
PROGRAM-MBADS
(SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDBMN (SEM 2)
SUBJECT
CODE & NAME-MA0042/MA0047 TREASURY MANAGEMENT
BK
ID-B1813
CREDIT-4
MARKS-60
Q1.
Cash management forms part of the treasury’s core functions either in banks or
in corporate institutions. Do you agree? Substantiate your arguments by differentiating
bank treasury and corporate treasury.
(Similarities,
Differences) 5, 5
Answer.
Yes, I agree with this given
statement. Today, treasurers need to
extend their boundaries and take up activities such as capital structuring,
customers financing, IT integration and risk management. They are also adding
value and managing risk by integrating their treasury functions with the
finance department. In addition to dealing with payments management, a treasurer’s
functions include planning, cash flow monitoring, managing bank accounts and
Q2.
Analyse how the repo reforms brought changes in the Indian bank’s treasury
landscape.
(Explain
Indian Repo market reforms)10
Answer.
Indian
Repo market reforms
This money market instrument
helps in collateralised shortterm borrowing and lending through sale or
purchase operation in debt instruments. Here the securities are sold by the
holders to the investors with an agreement to repurchase them at a predetermined
rate and date.
Q3.
Discuss the role of interbank Mobile Payment services (IMPS) in India
(Explain
Interbank Mobile Payment services (IMPS) in India)10
Answer.
Interbank
Mobile Payment services (IMPS) in India
Interbank
Mobile Payment Service (IMPS) seems to be gradually gaining ground in India as
almost all major banks have extended the service that enables account
holders to access accounts and transfer funds using mobile phones. Since
February 2012, around 15 banks have extended the IMPS service to their customer
and the number of people adopting the service has gone up significantly.
Indian
payment services provider Atom Technologies, a subsidiary of
Q4.
Assume you are the treasurer of ABC bank. Discuss how bank should ensure
liquidity measures and manage the liquidity.
(Explain
Liquidity management)10
Answer.
Liquidity
management
Liquidity is a bank’s capacity to
fund increase in assets and meet both expected and unexpected cash and
collateral obligations at reasonable cost. The banks need to avoid unacceptable
losses and enhance profit. An effective management of liquidity can increase
cash efficiency of a bank by squeezing out the maximum value from its cash
Q5.
An integrated treasury acts as a centre of arbitrage and hedging activity.
Substantiate your reasons.
(Explain
integrated treasury)10
Answer.
Integrated
treasury
An integrated treasury means a
dealing unit that has forex dealing operations and money and funding
departments housed in the same premises. Traditional money and funding
operations were less evolved, and the diversity of money and capital market
instruments we see today were lacking, interest rate movements were tardy and
the
Q6.
Discuss the role played by SAP – Treasury in treasury Management.
(Role
of SAP-Treasury) 10
Answer.
Role
of SAP-Treasury
Treasury management is
responsible for all financial transactions—from deal creation, confirmation and
payment file generation via accounting entries. SAP applications simplify the
task of the treasurer. It manages debt and investments more effectively, and
monitors and manages the full spectrum of financial instruments with greater
No comments:
Post a Comment