<<12345678910111213141516171819202122232425>> 1. What are the two reserve requirements that treasury has to comply with?MCLR and SLRCRR and SLRRepo and CRRVaR and CRRQuestion 1 of 25 2. Integrated Treasury in Banking set up refers to:Computerization of all bank branchesComputerization of all treasury operationsCentralization of all back office operations of forex branchesIntegration of money market, securities market and foreign exchange operationsQuestion 2 of 25 3. What is the important operational feature of integrated treasury?Having a common dealing roomHaving a common Mid/back officesLooking for interest arbitrage across currency markets and be in a position to shift swiftly, a placement in Rupee denominated commercial paper to lending in USD in global interbank market and also being to source funds in global markets and swap the funds into domestic currency or vice versa, depending on market opportunitiesAll the aboveQuestion 3 of 25 4. Treasury in the normal course will manageAll funds raised through depositsAll deployment of funds through advancesLiquidityALM book, Merchant book and Trading bookQuestion 4 of 25 5. Globalization refers to:Full convertibility of all currencies in the worldRemoval of all trade barriers in the worldFixed rate of exchange for all currencies of the worldThe process of integrating domestic market with global markets, characterized by free capital flows and minimum regulatory interventionQuestion 5 of 25 6. What was the traditional focus of the Treasury function?Long-term investmentsCompliance with regulatory requirementsProprietary tradingCurrency exchange operationsQuestion 6 of 25 7. How has the scope of Treasury evolved over time?It has shifted towards long-term investments.It has become solely focused on liquidity management.It has expanded to include profit-generating activities.It has become less involved in market risk management.Question 7 of 25 8. What role does the Treasury play in Asset-Liability Management (ALM)?It has no involvement in ALM.It advises the management on regulatory compliance.It actively manages market risk for the entire bank.It focuses solely on short-term funds-flow.Question 8 of 25 9. How has the structure of Treasury departments in Indian banks changed over time?They have become entirely separate from other bank departments.They have combined with foreign exchange operations.They have shifted towards long-term investment strategies.They have integrated securities investment and foreign exchange functions.Question 9 of 25 10. What does Integrated Treasury in a banking set-up primarily refer to?Integration of retail banking and corporate bankingIntegration of money market, securities market, and foreign exchange operationsIntegration of customer service and marketing departmentsIntegration of loan processing and risk assessment functionsQuestion 10 of 25 11. What has contributed to the development of Integrated Treasury in the Indian context?Stringent regulations on foreign currency transactionsLimited access to global financial marketsDeregulation of interest rates and partial convertibility of RupeeDecrease in corporate demand for high-end banking servicesQuestion 11 of 25 12. How has the use of derivative products impacted Treasury operations?Reduced the need for risk managementLimited access to global financial marketsIncreased integration between domestic and global marketsDecreased demand for high-end banking servicesQuestion 12 of 25 13. What are the primary functions of Integrated Treasury?Retail banking and loan processingCredit assessment and mortgage servicesCash flow management, interest arbitrage, and risk managementAccount opening and customer supportQuestion 13 of 25 14. What does globalisation primarily refer to in the context of Treasury management?Integration of domestic and global markets with minimal regulatory interventionIsolation of domestic markets from global economic trendsImplementation of stringent regulations on foreign currency transactionsRestriction of capital flows between domestic and global marketsQuestion 14 of 25 15. How has the impact of globalisation affected the role of Treasury in banks?Reduced the need for Treasury involvement in risk managementLimited the scope of Treasury to domestic markets onlyExpanded the scope of Treasury to include global markets and cross-border investmentsDecreased the importance of derivative products in Treasury operationsQuestion 15 of 25 16. Which of the following best describes the impact of globalisation on interest rates and exchange rates?Interest rates and exchange rates are solely determined by domestic economic factorsInterest rates and exchange rates are not influenced by global capital flowsInterest rates and exchange rates are influenced by global interest rate trends and macro-economic factorsInterest rates and exchange rates are determined by government regulationsQuestion 16 of 25 17. Which of the following was NOT a primary function of Treasury in the past?Managing cash flow requirementsHandling foreign exchange transactionsInvesting in securities and strategic assetsProviding retail banking servicesQuestion 17 of 25 18. What has largely contributed to Treasury profits becoming attractive in recent times?Minimal credit risk in inter-bank marketsLow leverage in Treasury operationsHigh operational costs in TreasuryLimited involvement in money market activitiesQuestion 18 of 25 19. In the context of Treasury activities, what does the term "spread" refer to?The difference between buy and sell rates in foreign exchange transactionsThe margin added to the cost of funds for hedging purposesThe profit generated from trading securities in the equity marketThe interest earned on investments in government securitiesQuestion 19 of 25 20. How does Treasury benefit from interest arbitrage?By maintaining a diversified portfolio of securitiesBy engaging in speculative trading in the equity marketBy exploiting differences in interest rates across different marketsBy investing in long-term assets with guaranteed returnsQuestion 20 of 25 21. What is a key advantage of organizing the Treasury as a specialized branch rather than a department?Easier coordination with related departmentsGreater autonomy in accounting practicesDirect participation in clearing and settlement systemsEnhanced reporting capabilities to the CFOQuestion 21 of 25 22. What is the primary responsibility of the back-office in the Treasury?Executing deals in various marketsMonitoring exposure limits and stop loss limitsSettlement of deals and book-keeping activitiesProviding information to the management on key parametersQuestion 22 of 25 23. What is the function of the Middle Office (Mid-office) in the Treasury?Executing trades in the primary marketProviding administrative support to the TreasurySettlement of Nostro accounts with correspondent banksMonitoring exposure limits and implementing risk management systemsQuestion 23 of 25 24. Which department in the Treasury is responsible for maintaining and reconciling Nostro accounts with correspondent banks?Dealing RoomBack OfficeMiddle OfficeInvestment DepartmentQuestion 24 of 25 25. According to RBI guidelines, where should the Mid Office be functionally placed?Under the Dealing RoomUnder the Investment DepartmentDirectly under the ALCOUnder the Administration DepartmentQuestion 25 of 25 Loading...
