Preview Questions Treasury Manager | Role Specific Skill

Question 1: What is "back-to-back" trading in Treasury Operations?

Which action should you take?

Choose only one option

A trade executed to offset a prior trade

A trade processed manually

A trade settled on the same day

A trade involving two currencies

Question 2: How does a treasury manager manage counterparty exposure in derivatives trading?

Which action should you take?

Choose only one option

By increasing the amount of short-term debt issued

By using collateral management strategies and setting exposure limits

By diversifying the portfolio to include higher-risk assets

By focusing on equity market performance

Question 3: Which of the following strategies is best suited to mitigate interest rate risk in a fixed income portfolio?

Which action should you take?

Choose only one option

Reducing the number of bonds in the portfolio

Focusing on short-duration bonds

Increasing the portfolio's duration

Using interest rate swaps

Question 4: What is the most appropriate method for hedging against foreign currency risk in a diversified portfolio?

Which action should you take?

Choose only one option

Using equity options

Increasing the portfolio's exposure to domestic stocks

Using currency forward contracts

Increasing the bond portfolio's duration

Question 5: How should a Treasury Manager handle negative cash flow in a financial crisis?

Which action should you take?

Choose only one option

By renegotiating debt terms with creditors

By securing short-term financing to cover immediate liquidity needs

By cutting down on capital expenditures and delaying payables

By liquidating non-core assets quickly

Question 6: How should Treasury Managers report the impact of hedging activities in financial statements?

Which action should you take?

Choose only one option

Gains and losses should be reported in equity

Gains and losses should be recognized immediately in the income statement

Gains and losses should be deferred and reported in comprehensive income

Gains should be excluded from financial statements