Preview Questions Treasury Manager | Role Specific Skill

Question 1: Which of the following is the most effective measure for assessing the risk-adjusted return of an investment portfolio?

Which action should you take?

Choose only one option

Beta coefficient

Sortino ratio

Alpha coefficient

Sharpe ratio

Question 2: How can a Treasury Manager optimize working capital while ensuring adequate cash flow management?

Which action should you take?

Choose only one option

By accumulating high levels of cash reserves

By reducing inventories and shortening receivables collection time

By increasing short-term borrowing and extending payables terms

By investing in long-term assets for higher returns

Question 3: What is the most common method used by treasury managers to manage liquidity risk in a multi-currency environment?

Which action should you take?

Choose only one option

Currency swaps and forward contracts

Hedging with commodity futures

Asset-backed lending

Using short-term loans and borrowing from central banks

Question 4: How does credit risk affect a Treasury Manager's decision when selecting counterparties for investment?

Which action should you take?

Choose only one option

The Treasury Manager should focus on diversification and ignore credit risk

It only affects liquid assets and cash positions

It impacts only long-term investments, not short-term ones

The Treasury Manager must assess the creditworthiness and the likelihood of default

Question 5: 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 6: How do Treasury Managers typically handle negative cash flow situations in a BFSI organization?

Which action should you take?

Choose only one option

By ignoring the issue and deferring cash flow management until next quarter

By cutting operational costs immediately without strategic planning

By securing short-term financing or adjusting payment terms

By increasing customer credit exposure to boost cash inflows