1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
or
call us at -> 08263069601
Summer 2013
Master of Business Administration - MBA Semester 4
MF 0016 –Treasury Management– 4 Credits
(Book ID: B1311)
Assignment- 60 marks
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. Consider yourself as a chief financial officer, describe the treasury functions that you handle and discuss
how you will formulate the treasury policy.
Answer : The CFO's job is a very complex one. We have only scratched the surface of the many things this
executive is responsible for. One thing is certain: a great CFO will usually differ from a good CFO by the way
that he or she is able to project the long-term financial picture of the company and by how the company
thrives based on his or her analyses. If i am at the position of CFO i will have responsibility towards
maintenance of the treasury and there will be a
Q2. The NCDEX trading system provides a fully automated screen based trading for futures commodities on
basis of nationwide online monitoring and surveillance mechanism. Discuss explain the concept of
commodity market, role of regulator and players.
Answer : Concept of commodity market :
Commodity market refers to physical or virtual transactions of buying and selling involving raw or primary
commodities. A soft commodity generally refers to commodities harvested as products like wheat, coffee,
cocoa, sugar, corn, wheat, soybean, and fruit traded in the commodity market. Hard commodities usually refer
to commodities that are extracted
Q3. Consider yourself as a CEO of an automobile company in India, Which tool will you adopt to minimize
risk occurring in the production process.
Answer : Risk management :
Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the
effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical
application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events

2. or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project
failures (at any phase in design,
Q4. Suppose you are the CEO of MS Bank Corporation. Your bank is facing interest rate risk, which has
affected its operation significantly. Discuss the factors that influence the level of market interest rate.
Answer : Interest rate risk :
Interest rate risk is the risk that arises for bond owners from fluctuating interest rates. How much interest rate
risk a bond has depends on how sensitive its price is to interest rate changes in the market. The sensitivity
depends on two things, the bond's time to maturity, and the coupon rate of the bond. Interest rate risk
analysis is almost always based on simulating movements in one or more yield curves using the Heath-Jarrow-
Morton framework to ensure that the yield curve movements are both consistent with current market yield
curves and such that no riskless arbitrage
Q5. The treasury maintains the bank funds, it automatically surrounds liquidity and interest rate risks.
Discuss the relationship between treasury and ALM
Answer : Treasury :
A treasury is either a government department related to finance and taxation or a place where currency or
precious items (gold, diamonds, etc.) is/are kept. The head of a treasury is typically known as a treasurer. This
position may not necessarily have the final control over the actions of the treasury, particularly if they are not
an elected representative. The primary functions of a treasury department at a bank involve asset/liability
management. A substantial amount of time is invested by the department in forecasting net interest income
(NII) and measuring the bank's interest rate risk (IRR) or sensitivity to changes in prevailing interest rates. The
statistics generated by the department are
Q6. ALM deals with strategic balance sheet management, which involves various risks, caused due to the
changes in exchange rates and the position of liquidity, interest rates in the organisation. Discuss how the
ALM contributes to the risks in balance sheet management.
Answer : ALM :
Asset-liability management (ALM) is a term whose meaning has evolved. It is used in slightly different ways in
different contexts. asset-liability management was pioneered by financial institutions, but corporations now
also apply asset-liability management techniques. This article describes asset-liability management as a
general concept, starting with more traditional usage.
Traditionally, banks and insurance
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
or
call us at -> 08263069601