Treasury Management Module (Intermediate) Practice Exam

Treasury Management Module (Intermediate) Practice Exam

The Treasury Management Module (Intermediate) is a program designed to equip individuals with a deeper understanding of corporate treasury management functions and strategies. It builds upon foundational knowledge, typically acquired through an introductory module, and delves into more complex aspects of managing an organization's financial resources.

Who should attend:

This module is ideal for:

• Treasury professionals: Seeking to enhance their skills and knowledge in managing corporate finances.
• Finance professionals: Aiming to gain a broader understanding of treasury management principles and practices.
• Individuals looking to:
  • Advance their careers in treasury management.
  • Prepare for professional certifications in treasury management.

Key Learning Outcomes:

By participating in the Treasury Management Module (Intermediate), individuals can expect to:

Gain a comprehensive understanding of:

• Advanced cash flow forecasting techniques.
• Risk management strategies for foreign exchange (FX) and interest rates.
• Derivative instruments used in treasury management, such as options and swaps.
• Regulatory compliance considerations for treasury operations.
• Advanced investment management strategies for corporate treasuries.

Develop the ability to:

• Analyze and interpret financial data relevant to treasury management.
• Evaluate and implement various risk management techniques.
• Recommend and implement appropriate financial instruments for specific needs.
• Apply best practices for efficient and effective treasury operations.

Exam Format

• Duration: 120 minutes
• No. of questions: 60
• Maximum marks: 100, Passing marks: 60 (60%). There is negative marking for incorrect answers.
• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

Course Outline

The exam covers the following topics:

1. Treasury Management Fundamentals

• Background
• Return Metrics
• Risk Metrics
  • Standard Deviation
  • Beta
  • Weighted Average Maturity
  • Modified Duration

2. Product / Exposure Structures

• Background
• Cash Market
• Futures
• Forwards
• Options
• SWAPs
  • Interest Rate Swap
  • Currency Swap
  • Credit Default Swap (CDS)
  • Swaption
• SSELECTIVVELLY-Invest Classification Scheme for Investment Products
• Off-Balance Sheet Exposures

3. Capital Structure & Weighted Average Cost of Capital

• Background
• Capital Structure
• Earnings, Interest and Debt Servicing
• Sources of equity funds
• Cost of equity
• Sources of debt funds
• Cost of debt
• Weighted Average Cost of Capital
• Cost of Capital for Trading Portfolios
• Leasing and hire purchase

4. Treasury Management in Manufacturing and Services Companies

• Background
• Contribution Analysis
• Operating Leverage & Financial Leverage
• Balance Sheet
• Liquidity Management
• Foreign Exchange Exposures (Operations)
• Foreign Exchange Exposures (Loans taken or investments made)
• Commodity Exposures
• Credit Exposures

5. Treasury Management in Banking & Finance Companies

• Background
• Capital Adequacy
• Balance Sheet
• Yield Curve and Spreads
• Credit Risk
• Interest Risk
• Re-financing Risk
• Asset-Liability Management
• Securitisation
• Foreign currency risk
• Equity Exposure

6. Accounting Issues in Treasury Management

• Background
• Long-term supply arrangements
• Foreign Currency borrowing for a fixed asset
• Hedge and Hedged Instrument
• Investment types

7. Treasury Management Processes and Risk Management in Treasury

• Background
• Domestic Remittances
• International Remittances
• Liquidity Management
• Risk Management in Treasury