Preview Questions Treasury Manager | Role Specific Skill

Question 1: How is the net stable funding ratio (NSFR) calculated?

Which action should you take?

Choose only one option

Net income/Total liabilities

Required stable funding/Net income

Stable funding/Available funding

Available stable funding/Required stable funding

Question 2: What is the role of cash flow management in managing debt service obligations?

Which action should you take?

Choose only one option

To delay debt repayments to free up cash

To increase leverage to finance additional investments

To ensure that the company has adequate cash reserves to meet its debt obligations on time

To reduce interest rates on debt

Question 3: When managing liquidity, what is the most important consideration for a Treasury Manager when choosing between short-term and long-term investments?

Which action should you take?

Choose only one option

The alignment of investment maturity with projected liquidity needs

The potential return on investment

The impact of market interest rates on investment value

The risk profile of the investment

Question 4: Which of the following would be a red flag in analyzing the cash flow of a financial institution?

Which action should you take?

Choose only one option

A consistent increase in cash reserves

A balanced mix of debt and equity financing

Consistent dividend payments to shareholders

A significant drop in operating cash flow despite stable revenues

Question 5: What is the best practice for managing liquidity risk in a Treasury Manager's investment portfolio?

Which action should you take?

Choose only one option

Maintaining a diversified portfolio with a focus on fixed income securities

Ensuring a balance between liquid assets and strategic investments

Relying solely on high-yield, illiquid investments for higher returns

Holding all investments in cash equivalents

Question 6: In treasury operations, how would you structure a hedging program to mitigate FX risks for a multinational bank?

Which action should you take?

Choose only one option

By limiting foreign exposure to high-volatile currencies

By using a combination of forwards, options, and swaps

By relying on a single foreign currency basket

By focusing solely on futures contracts