MA0042 & TREASURY MANAGEMENT

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ASSIGNMENT

DRIVE	FALL 2014
PROGRAM	MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDBMN (SEM 2)
SUBJECT CODE & NAME	MA0042 & TREASURY MANAGEMENT
BK ID	B1813
CREDITS	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. 1. Write the functioning of the financial system. Explain about cross border financing.

Answer:Functions of financial system are:

·         Saving function: Public saving find their way into the hands of those in production through the financial system. Financial claims are issued in the money and capital markets which promise future income flows. The funds with the producers result in production of goods and services thereby increasing society living standards.

·         Liquidity function: The financial markets

Q. 2. Explain the role of a Treasury Manager or Treasurer. Give the differences between a treasury of a corporate and a bank.

Answer: Corporate treasurers play a vital role in improving and maintaining the financial standing of a company or organisation. They are often responsible for:

·         Determining financial strategy and policy;

·         Advising on what businesses to invest in;

·         Arranging appropriate funding;

Q. 3. What is call money market? Write the advantages of call market.

Explain about the commercial papers with its advantages.

Answer: The call money market is a mechanism that allows both dealers and brokers to locate and borrow funds that can be used for investment needs. The funds located through the money market can be utilized to provide financing for the purchase of securities that can be added to the portfolio of the investment firm, or as a resource that will cover the margin accounts of the firm’s clients.

As a means of securing financing for credit needs, the call money market provides a range of options. Chief among them is the ability to create and mana

Q. 4.Give an introduction of Foreign Exchange Exposure Management and write about the three types of exposures with examples.

Answer: Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company. Foreign exchange risk also exists when the foreign subsidiary of a firm maintains financial statements in a currency other than

Q. 5.Write short notes on:

a) Regulatory Pressure

b) Regulatory Arbitrage

c) Treasury Product Development

Q.a) Regulatory Pressure

Answer: Regulators’ intensified efforts to curtail lending they see as risky has led several big banks to sit out a plum takeover deal, in the latest sign the initiative is shaking up the private-equity buyout market.Regulators including the Federal Reserve and Office of the Comptroller of the Currency in 2013 issued guidance aimed at discouraging the banks they regulate from financing takeovers and other transactions they see as saddling a company

Q. b) Regulatory Arbitrage

Answer:It is a practice whereby firms capitalize on loopholes in regulatory systems in order to circumvent unfavorable regulation. Arbitrage opportunities may be accomplished by a variety of tactics, including restructuring transactions, financial engineering and geographic relocation. Regulatory arbitrage is difficult to prevent entirely, but its prevalence can be limited by closing the most obvious loopholes and thus increasing the costs

Q. c) Treasury Product Development

Answer: This role is within the Treasury Unit responsible for the identification, design, development and implementation of Sharia compliant treasury products and investments. These products and investments will be used for managing the bank's own balance sheet and also for distribution to relevant corporate customers.

Q. 6. Treasury has become an integral part of business function. How does Information Technology (IT) play an effective role? Write about the Treasury Information Systems.

Answer: Information technology (IT) has become a vital and integral part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that own a single computer, IT plays a role. The reasons for the omnipresent use of computer technology in business can best be determined by looking at how it is

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601