Preview Questions Treasury Manager | Role Specific Skill

Question 1: In treasury operations, how is the capital adequacy ratio (CAR) determined for risk assessment?

Which action should you take?

Choose only one option

By calculating the ratio of long-term debt to current liabilities

By calculating the ratio of cash to non-performing assets

By analyzing the balance between equity and liabilities

By comparing total equity to total assets

Question 2: What is the effect of a decrease in cash flow from operating activities on a financial institution's overall liquidity?

Which action should you take?

Choose only one option

It increases the likelihood of a liquidity crisis

It may result in increased borrowing from the capital markets

It typically leads to a decrease in deposit inflows

It reduces the need for short-term investments

Question 3: How does a treasury manager utilize economic indicators?

Which action should you take?

Choose only one option

To determine cash flow timing

To optimize foreign exchange reserves

To track competitor performance

To predict interest rate trends

Question 4: What is the objective of using collateralized debt obligations (CDOs) in risk mitigation for a Treasury portfolio?

Which action should you take?

Choose only one option

To reduce operational costs

To concentrate risk in a single asset class

To maximize returns from high-risk investments

To pool assets together and create tranches to distribute risk

Question 5: 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

Question 6: How does a Treasury Manager align financial planning with the company's strategic goals?

Which action should you take?

Choose only one option

By linking funding strategies with strategic expansion objectives

By focusing solely on optimizing liquidity

By forecasting long-term capital expenditure

By calculating quarterly earnings reports