Treasury Questions
- Adam Edwards
- Oct 23, 2024
- 8 min read
Updated: Nov 13, 2024
I'm studying for a qualification in International Cash Management, and below are 250 questions AI think I should be able to answer to get that qualifiaction.
What is the primary role of a treasury professional?
How does accounting influence treasury decisions?
Define 'relevant accounting calculations' in treasury.
What are the key tax considerations for treasury?
Why is governance important in the treasury function?
What is a conflict of interest, and how is it managed in treasury?
How does corporate governance impact treasury activities?
What is risk management in treasury?
How is risk assessed in treasury?
What tools are used to manage treasury risks?
Explain the concept of risk reporting.
What is the treasury environment?
Describe the role of regulation in treasury operations.
How does tax affect treasury strategies?
What is reputation management in the context of treasury?
Name one type of treasury risk and explain it.
How do treasury professionals handle compliance requirements?
Why is ethics crucial in treasury?
What constitutes treasury controls?
What is the agency problem?
How can conflicts of interest affect treasury decisions?
What is the impact of poor governance on treasury?
Describe a treasury control essential.
What is the role of audit in treasury?
How does risk calculation differ from risk assessment?
What are the components of an effective risk management process?
Describe a typical risk management report.
How should treasury report risk to the wider organisation?
What are the consequences of inadequate risk management?
Explain the primary role of treasury within an organisation.
Why are treasury systems important?
Describe internal relationship management in treasury.
What is bank relationship management?
How do credit rating agencies affect treasury decisions?
Describe the structure of a treasury function.
What are the daily activities of a treasury professional?
How is treasury policy established in an organisation?
Why are processes and controls necessary in treasury?
What is cash management?
Why is short-term liquidity important?
Explain the daily cash management cycle.
How is cashflow forecasting performed?
Describe the structure of bank accounts in treasury.
How do interest rates impact treasury operations?
What are the primary functions of a treasury department?
How do treasury professionals manage external relationships?
What is the impact of credit ratings on treasury strategies?
What processes are involved in maintaining treasury controls?
Describe the key steps in cash management.
What factors influence an organisation’s liquidity needs?
Why is accurate cashflow forecasting important?
How do bank account structures support cash management?
Explain the relationship between treasury and interest rate calculations.
What are the main objectives of cash management?
How do treasury systems facilitate day-to-day operations?
Why is it essential to maintain strong relationships with banks?
Describe a typical treasury policy.
How is short-term liquidity measured?
What is the role of interest rates in determining cash requirements?
What is the primary purpose of financial markets for treasury?
Explain the concept of equity capital markets.
Describe the role of debt capital markets in treasury.
How does bank debt support treasury activities?
What are the key differences between equity and debt markets?
Explain the role of financial markets in securing funding.
What are the basic elements of a financial transaction?
How are investments managed in treasury?
What is the purpose of foreign exchange transactions in treasury?
Describe a fundamental interest rate transaction.
What conventions are used in money market transactions?
How does treasury manage interest rate risks?
What is corporate finance theory?
Explain the principle of risk and return.
How is capital structure determined in an organisation?
Describe the relationship between treasury and funding.
What is project appraisal in corporate finance?
How does treasury determine the cost of capital?
Describe the process of raising finance in corporate settings.
What is the importance of project appraisal for treasury?
How does equity capital differ from debt capital?
What are the key risk factors in foreign exchange transactions?
Describe the fundamentals of calculating foreign exchange rates.
Why is risk and return analysis essential in treasury?
What is a capital structure, and why is it important?
How is effective finance raising achieved?
What are the main principles of corporate finance?
Describe a scenario where financial markets are used for investments.
How does treasury handle currency exchange risks?
What are the conventions for setting interest rates in the money market?
Explain the role of banks in the debt capital market.
How are corporate bonds used in raising finance?
What factors influence the choice between equity and debt financing?
Explain how treasury secures funding through the equity market.
What are the main risks in interest rate transactions?
Describe an example of a project appraisal calculation.
What is the importance of effective capital raising strategies?
How does risk impact funding decisions in treasury?
Explain how treasury professionals assess market conditions for funding.
Describe the steps involved in a project appraisal analysis
How do accounting standards impact treasury operations?
What are the main accounting principles treasury professionals need to know?
Describe an example of a treasury-specific accounting calculation.
How does tax regulation influence treasury’s decision-making?
Explain the relationship between treasury and regulatory bodies.
What are some common treasury compliance requirements?
How do treasury professionals handle tax planning?
What is the impact of international regulations on treasury?
How does governance affect risk management in treasury?
What role does transparency play in treasury governance?
Explain how ethical behaviour can impact treasury outcomes.
What is a code of ethics, and why is it important in treasury?
Describe an example of an ethical dilemma in treasury.
How are conflicts of interest identified in treasury?
What measures are taken to prevent conflicts of interest?
Why is accountability critical in treasury?
Explain how audit functions support treasury activities.
What is internal control, and how is it applied in treasury?
How do treasury professionals document compliance processes?
Describe how risk assessments are conducted in treasury.
What are key performance indicators (KPIs) for risk management?
Explain how treasury reports its risks to senior management.
What types of risks are specific to treasury?
How does treasury manage credit risk?
What is liquidity risk, and how does it impact treasury?
Describe how foreign exchange risk is managed in treasury.
What is operational risk in the context of treasury?
How does interest rate risk affect treasury activities?
What tools are used to calculate interest rate risk?
How is currency risk calculated in treasury?
Explain the primary internal stakeholders of a treasury function.
Describe the relationship between treasury and finance teams.
How does treasury collaborate with accounting departments?
What are the main functions of a treasury management system?
How is a treasury department typically structured?
What role does the treasury play in capital allocation?
How do treasury policies support organisational goals?
Explain how treasury professionals monitor compliance with policies.
What are the essential elements of a cash management policy?
How do treasury teams support operational funding needs?
What strategies are used for optimising cash flow?
Describe a cash concentration strategy.
What is the purpose of cash pooling in treasury?
Explain the benefits of netting in cash management.
How does treasury handle intercompany funding?
What are the main purposes of cashflow forecasting?
Describe the impact of interest rate fluctuations on cash management.
How are bank fees managed within treasury operations?
Why is it important for treasury to reconcile bank accounts?
Explain the role of short-term investments in treasury.
How does treasury decide on cash surplus allocation?
What are common treasury strategies for managing excess cash?
Describe the significance of working capital in treasury.
How is the working capital cycle managed in treasury?
Explain the importance of liquidity ratios in treasury.
What is the role of debt management in treasury?
How are debt repayments scheduled in treasury?
Describe an example of treasury’s involvement in financing.
What is a revolving credit facility, and how is it used?
Explain the treasury’s role in ensuring solvency.
What are the steps for preparing a cashflow forecast?
How does treasury use predictive analysis in cash management?
What is the difference between liquidity and cashflow?
Explain the treasury’s role in budgeting.
How does treasury support credit management?
What are the treasury's responsibilities in managing cash positions?
Describe a daily treasury report.
How does treasury monitor counterparty risk?
Explain the function of escrow accounts in treasury.
What is the impact of financial reporting on treasury decisions?
Describe the relationship between treasury and financial markets.
How does treasury benefit from capital markets?
What are the different types of securities available to treasury?
How does treasury participate in bond markets?
Explain the impact of credit spreads on treasury investments.
What are the key players in equity markets relevant to treasury?
Describe a treasury bill and its purpose in corporate finance.
How are bonds valued in treasury?
Explain how yield curves are interpreted by treasury.
What is the purpose of a secondary market for treasury?
Describe the role of money markets for short-term funding.
How does treasury approach asset-liability matching?
What are the characteristics of a liquid financial market?
Explain the relationship between inflation and interest rates.
What are forward rates, and how are they calculated?
Describe the process of issuing bonds.
How does a bond’s credit rating affect its yield?
What is a foreign exchange (FX) forward contract?
Explain the impact of FX fluctuations on international trade.
How is foreign exchange exposure managed in treasury?
What is an FX swap, and how is it used in treasury?
Describe how spot exchange rates are determined.
How are interest rate swaps used in treasury?
What is hedging, and why is it important for treasury?
How does treasury assess interest rate forecasts?
Describe the LIBOR transition and its significance to treasury.
What are the key components of an FX transaction?
How are currency options used in treasury?
Explain the treasury’s role in risk-return analysis.
What is a capital investment appraisal?
How does treasury evaluate project financing options?
What are the main types of corporate bonds?
How are debt covenants managed in treasury?
Explain how debt maturity affects treasury strategy.
What is a syndicated loan, and why is it used?
Describe the impact of capital structure on financial flexibility.
What is debt refinancing, and when is it beneficial?
How does treasury calculate weighted average cost of capital?
What are the primary sources of capital for treasury?
Describe the function of mezzanine financing.
How does treasury manage debt portfolios?
What are the key factors in investment decision-making?
Explain the relationship between project appraisal and NPV.
What is the significance of cost of capital in treasury?
Describe an example of a capital budgeting decision.
How is the internal rate of return (IRR) used in project appraisal?
Explain the importance of cash flow analysis in investment decisions.
What is a feasibility study in the context of project finance?
Describe the role of tax considerations in financing decisions.
What are dividends, and how do they relate to treasury?
How does treasury support shareholder value creation?
What is dividend yield, and how is it calculated?
Explain the concept of retained earnings.
How does treasury manage equity investments?
What is equity financing, and when is it preferred?
Describe treasury’s involvement in mergers and acquisitions.
How does leverage affect financial decisions in treasury?
What is a leveraged buyout (LBO)?
Describe the impact of share price on treasury decisions.
How does treasury use financial ratios?
What is a credit rating, and how does it impact treasury?
How are cash reserves allocated in treasury?
Describe how treasury participates in joint ventures.
What is financial risk modelling?
Explain scenario analysis in treasury planning.
Describe the benefits of debt-to-equity ratio analysis.
What are treasury’s strategies for managing funding gaps?
How does treasury assess market liquidity?
What are the implications of a currency devaluation?
Describe the importance of credit limits in treasury.
How does treasury participate in structured finance?
Explain securitisation and its benefits for treasury.
Describe the treasury’s approach to managing financial crises.
What is financial leverage, and how does it impact profitability?
How are working capital loans managed?
Describe an example of asset-backed financing.
Explain the significance of the Basel regulations.
What is the purpose of a currency peg?
How does treasury respond to inflationary pressures?
Explain the treasury’s role in financial restructuring.