ASSIGNMENT

DRIVE SPRING 2014

PROGRAM MBADS (SEM 4/SEM 6)
MBAFLEX/ MBAN2 (SEM 4)
PGDFMN (SEM 2)
SUBJECT CODE &
NAME
MF0016
TREASURY MANAGEMENT
BK ID B1814
CREDIT 4
MARKS 60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.

Q.No Question Marks Total Marks
1 Consider you are the chief financial officer of a hospital. How would you oversee the
companys Treasury function?
Functions

10 10
2 The interest rate offered on Certificate of Deposits varies from bank to bank. Refer some of
the public sector and private sector banks and analyse the factors affecting the interest rates.


Certificate of Deposits
Factors (3 banks)

4
3*2= 6
10
3 Assume you are the Treasurer of a Company. How would you implement and maintain
effective liquidity practices in your company?

Explain effective liquidity practices in your
company


10
10
4 Analyse the techniques for measuring Interest Rate Risk. Explain the concept of asset-liability
rate sensitivity and strategies for controlling Interest Rate Risk

Analyse the techniques for measuring Interest Rate
Risk

5

10





Explain the concept of asset-liability rate sensitivity
and strategies


5
5 Assume you are a treasurer of a company and you are faced with two situations.
Explain how would you solve these problems.
The cases could be a) large loan repayment coinciding with delay in receipt of a large trade
receivable; b) and locking up customer advances in payment towards fixed assets.


Use of money market instruments
Interactions with the customers




5*2=10
10
6
Briefly explain at least three actions relating to treasury that have changed substantially with
globalization. Visit a bank and analyse the various treasury products offered by the bank to
its customers. Identify which of these are suitable for a large company with cash to invest, and
why.

Latest developments in Treasury
Treasury products of two banks

4
2*3=6
10