SEM 4- SMU MBA SUMMER 2015 MA0047 TREASURY MANAGEMENT
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
DRIVE-SUMMER 2015
PROGRAM-MBA (SEM 4)
SUBJECT CODE & NAME-MA0047 TREASURY MANAGEMENT
BK ID-B1813
CREDIT-4
MARKS-60
Q1 Asset liability management (ALM) refers to the strategic balance involving risks caused by the changes in rates of interest, exchange and liquidity position in the organisation. Do you agree? If so, narrate the significance and objectives of ALM in recent years caused by these changes.
(Significance, Objectives)5, 5
Ans.
Significance and objectives of ALM
In banking institutions, asset and liability management is the practice of managing various risks that arise due to mismatches between the assets and liabilities (loans and advances) of the bank.
Banks face several risks
Q2. “A debt market establishes a structured environment for trading of debt instruments between interested parties like corporate partners”. Can you elaborate further citing the features and classifications of Indian debt market and giving examples of some commonly traded debt instruments?
(Features and classifications, Commonly traded debt instruments)5,510
Ans.
Features and classifications of Indian debt market
Debt market refers to the financial market where investors buy and sell debt securities, mostly in the form of
Q3. Describe foreign exchange SWAPs. How will you compare and contrast between foreign exchange and currency SWAPs ?
(Describe foreign exchange SWAPs, Describe Currency SWAPs , Similarities and differences)3,3,4
Ans.
Foreign exchange SWAPs
In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward).
Q4. “A firm must have adequate working capital, neither excess nor inadequate”. Do you agree? Justify your views citing the imminent risks of excess or inadequate working capital.
(Proper working capital management, Risks of excess or inadequate working capital)5, 5
Ans.
Proper working capital management
A managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other. Working capital management ensures a company has sufficient cash flow in order to meet its short-term debt obligations
Q5. Discuss your perception about Interest Rate Risk (IRR) – the causes and effects. How would you explain the measurement techniques for IRR ?
(Why does IRR occur ? , Measurement techniques of IRR) 5, 5
Ans.
Interest Rate Risk (IRR)
Interest rate risk is risk to the earnings or market value of a portfolio due to uncertain future interest rates. Discussions of interest rate risk can be confusing because there are two fundamentally different ways of approaching the topic. People who are accustomed to one often have difficulty
Q6. “A more advanced treasury organization has evolved in the past decade in which the focus on management has followed the economic factors which drive firm value with corporate wide cash flow”. In the light of above discuss the areas of concentration of modern treasury management.
(Role of modern treasury management – areas of focus- concept of firm value and corporate wide cash flow)10
Ans.
Role of modern treasury management
Treasury management (or treasury operations) includes management of an enterprise’s holdings, with the ultimate goal of managing the firm’s liquidity and mitigating its operational, financial and
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
