Preview Questions Treasury Manager | Role Specific Skill

Question 1: In portfolio optimization, what does the efficient frontier represent?

Which action should you take?

Choose only one option

A portfolio that focuses on only one asset class

The portfolio with the lowest risk and highest return

The set of portfolios that offer the highest expected return for a given level of risk

The best portfolio in terms of liquidity

Question 2: Which methodology would a Treasury Manager use to measure the effectiveness of a hedging strategy against risk?

Which action should you take?

Choose only one option

Value-at-risk (VaR)

Return on equity (ROE)

Debt-to-equity ratio

Earnings per share (EPS)

Question 3: Which of the following is a key consideration for a Treasury Manager when selecting assets for a portfolio in a low-interest-rate environment?

Which action should you take?

Choose only one option

The tax efficiency of investment vehicles

The portfolio's duration and sensitivity to interest rates

The high yield of fixed-income securities

The potential for capital appreciation

Question 4: What is the impact of interest rate fluctuations on the capital management strategy of a financial institution?

Which action should you take?

Choose only one option

Interest rate fluctuations primarily affect equity financing

Interest rate fluctuations impact the cost of debt and the overall return on equity

Interest rate changes only affect short-term liquidity, not capital structure

Interest rate changes have no impact on capital management

Question 5: How should Treasury Managers report reclassification of securities from "available for sale" to "held to maturity" under IFRS?

Which action should you take?

Choose only one option

Recognize the fair value adjustment in other comprehensive income

Recognize the fair value adjustment in the income statement

Report reclassification as a financial expense

No reclassification should occur

Question 6: Which cash flow metric is most effective for assessing a company's short-term liquidity position?

Which action should you take?

Choose only one option

Free cash flow

Net cash flow

Operating cash flow

Cash flow from investing activities