1. Dear students get fully solved SMU MBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
ASSIGNMENT
DRIVE SPRING 2014
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4)
SUBJECT CODE & NAME MA0042-TREASURY MANAGEMENT
SEMESTER 4
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.
Q1. Cash management forms part of the treasury’s core functions either in banks or in corporate
institutions. Do you agree? Substantiate your arguments by differentiating bank treasury and corporate
treasury.
(Similarities, Differences) 5, 5
Answer.

2. Yes, I agree with this given statement. Today, treasurers need to extend their boundaries and take up
activities such as capital structuring, customers financing, IT integration and risk management. They are
also adding value and managing risk by integrating their treasury functions with the finance department. In
addition to dealing with payments management, a treasurer’s functions include planning, cash flow
monitoring, managing bank accounts and pooling and netting. He should have records of previous recurring
expenses and disbursement patterns.
Q2. Analyse how the repo reforms brought changes in the Indian bank’s treasury landscape.
(Explain Indian Repo market reforms)10
Answer.
Indian Repo market reforms
This money market instrument helps in collateralised short-term borrowing and lending through sale or
purchase operation in debt instruments. Here the securities are sold by the holders to the investors with an
agreement to repurchase them at a predetermined rate and date.
On the other hand, under the reverse repo transactions, securities are purchased with a simultaneous
commitment to resell at a predetermined rate and date.
Since 1999, reforms were undertaken to widen the repo market.
Q3. Discuss the role of interbank Mobile Payment services (IMPS) in India
(Explain Interbank Mobile Payment services (IMPS) in India)10
Answer.
Interbank Mobile Payment services (IMPS) in India
Interbank Mobile Payment Service (IMPS) seems to be gradually gaining ground in India as almost all major
banks have extended the service that enables account holders to access accounts and transfer funds using
mobile phones. Since February 2012, around 15 banks have extended the IMPS service to their customer
and the number of people adopting the service has gone up significantly.
Indian payment services provider Atom Technologies, a subsidiary of Financial Technologies (India) Limited,
has introduced Interbank Mobile Payment Service (IMPS) to its service, enabling merchants to make
Interbank payments on their mobile phones. The company has been a partner of YES Bank for this initiative.
While the financial details of the deal remained undisclosed, Atom Technologies said some of its clients
would be integrating IMPS operations through this
Q4. Assume you are the treasurer of ABC bank. Discuss how bank should ensure liquidity measures and
manage the liquidity.
(Explain Liquidity management)10
Answer.
Liquidity management
Liquidity is a bank’s capacity to fund increase in assets and meet both expected and unexpected cash and
collateral obligations at reasonable cost. The banks need to avoid unacceptable losses and enhance profit.
An effective management of liquidity can increase cash efficiency of a bank by squeezing out the maximum
value from its cash resources and optimizing working capital performance. Much will depend on the
visibility a bank has on its business transactions. Similarly, it is important for a bank to get its forecasting
right. Overestimating surplus cash may force a bank

3. Q5. An integrated treasury acts as a centre of arbitrage and hedging activity. Substantiate your reasons.
(Explain integrated treasury)10
Answer.
Integrated treasury
An integrated treasury means a dealing unit that has forex dealing operations and money and funding
departments housed in the same premises. Traditional money and funding operations were less evolved,
and the diversity of money and capital market instruments we see today were lacking, interest rate
movements were tardy and the operations were spread
Q6. Discuss the role played by SAP – Treasury in treasury Management.
(Role of SAP-Treasury) 10
Answer.
Role of SAP-Treasury
Treasury management is responsible for all financial transactions—from deal creation, confirmation and
payment file generation via accounting entries. SAP applications simplify the task of the treasurer. It
manages debt and investments more effectively, and monitors and manages the full spectrum of financial
instruments with greater transparency and control. It streamlines the banking relationships with the
treasury and financial risk management, controls and monitors cash, and produce accurate and reliable
liquidity forecasts and plans. Treasury
Dear students get fully solved SMU MBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601