Preview Questions Treasury Manager | Role Specific Skill

Question 1: How does cross-border trade affect cash flow management, and what should a Treasury Manager consider?

Which action should you take?

Choose only one option

Foreign exchange gains

Exchange rate fluctuations and transaction fees

It does not significantly impact cash flow

Increased interest payments due to longer debt cycles

Question 2: What is the key benefit of using a value-at-risk (VaR) model in risk mitigation?

Which action should you take?

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It determines the portfolio's diversification level

It calculates the credit risk exposure of the portfolio

It measures the liquidity risk of a portfolio

It provides a statistical measure of the potential loss in the portfolio over a specific time period at a given confidence level

Question 3: In cash flow management, what is the purpose of a cash flow cycle?

Which action should you take?

Choose only one option

To assess the effectiveness of financial reporting systems

To determine the profitability of different business segments

To track the company's tax liabilities

To measure the time taken to convert investments into cash through operations

Question 4: In the event of a market crisis, which of the following risk mitigation techniques is most important for a Treasury Manager?

Which action should you take?

Choose only one option

Avoiding any form of diversification

Concentrating on high-yield assets to maximize returns

Increasing the leverage of the portfolio

Maintaining a liquidity buffer and reducing exposure to high-risk assets

Question 5: How does a Treasury Manager assess the impact of interest rate changes on an investment portfolio?

Which action should you take?

Choose only one option

By reviewing historical asset performance

By calculating the portfolio's duration and interest rate sensitivity

By evaluating macroeconomic indicators only

By analyzing the market's price-to-earnings ratio

Question 6: In preparing financial plans, what is the role of forecasting interest rates?

Which action should you take?

Choose only one option

To evaluate the overall creditworthiness of the company

To determine the company's tax liabilities

To assess the impact of future interest rate movements on the company's debt and investment costs

To predict the stock market movements