Dear students get fully solved SMU MBA assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601

1. Dear students get fully solved SMU MBA assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
ASSIGNMENT
DRIVE WINTER 2015
PROGRAM MBA(SEM 4)
SUBJECT CODE & NAME MA0047TREASURY 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.
Question. 1. “Risks in the organisation are usually considered as
trade-off between reward and threat.”Critically explain the
concept.
Answer:Riskisthe potential of gaining orlosingsomethingof value. Values (such as physical health,
social status, emotional well-being or financial wealth) can be gained or lost when taking risk
resulting from a given action or inaction, foreseen or unforeseen. Risk can also be defined as the
intentional interaction with uncertainty. Uncertainty is a potential, unpredictable, and
uncontrollable outcome; risk is a consequence of action taken in spite of uncertainty.
The risk-return tradeoff could easily be called the iron stomach test. Deciding what amount of risk
you can take on is one of the most important investment decision you will make.
The risk-returntradeoff isthe balance aninvestormustdecide onbetweenthe desire forthe lowest
possible risk for the highest possible returns.

2. Question. 2. Explain the types of corporate debt instruments
available in Indian markets and theirfeatures.
Answer:The most distinguishing feature of the debt instruments of Indian debt market is that the
return is fixed. This means, returns are almost risk-free. This fixed return on the bond is often
termedasthe 'couponrate' or the 'interestrate'.Therefore,the buyer(of bond) isgivingthe seller a
loan at a fixed interest rate, which equals to the coupon rate.
Classification of Indian Debt Market
Question. 3. Give an idea of foreign exchange market.
Who are the participants in foreign exchange markets?
Answer:The foreign exchange market (forex, FX, or currency market) is a global decentralized
market for the trading of currencies. This includes all aspects of buying, selling and exchanging
currencies at current or determined prices. In terms of volume of trading, it is by far the largest
market in the world. The main participants in this market are the larger international banks.
Financial centresaroundthe worldfunctionasanchorsof tradingbetween a wide range of multiple
typesof buyersandsellersaroundthe clock,withthe exceptionof weekends. The foreign exchange
market does not determine the relative values
Question. 4. Working capital forms the most important part of
operating capital. Do you agree? Justifyyour
agreement/disagreement.
Answer:Workingcapital (abbreviatedWC) isa financial metricwhichrepresents operating liquidity
available toabusiness,organizationorotherentity,includinggovernmentalentity.Along with fixed
assetssuchas plantandequipment,working capital is considered a part of operating capital. Gross
working capital equals to current assets. Working capital is calculated as current assets minus
current liabilities. If current assets are less than current liabilities, an entity has a working capital
deficiency, also called a working capital deficit.
Question. 5. What are the objectives of IRR Management
programme?
Answer:Interest rate risk or IRR exists in an interest-bearing asset, such as a loan or a bond, due to
the possibilityof achange in the asset'svalue resultingfromthe variabilityof interest rates. Interest
rate riskmanagementhasbecome veryimportant,andassorted instruments have been developed

3. to deal with interest rate risk. This article introduces you to ways that both businesses and
consumers manage interest rate risk using various interest rate derivative instruments.
(a) The board of directors of each Farm Credit bank must develop, implement, and effectively
oversee an interest rate risk management program tailored to the needs of the institution. The
program must establish a risk management process
Dear students get fully solved SMU MBA assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601