Introduction to Treasury

A bank received RM100mil deposit from customers. Can the bank disburse the entire RM100mil as loans?

• Yes

• No

Which of the following statement is FALSE about the key functions of treasury within a bank?

• Manage day-to-day liquidity needs

• Engage in trading of quoted shares on stock exchange

• Offer treasury products/services to the customers

• Manage/hedge exposures to financial risks

Which of the following is the function of the Treasury Back Office?

• Trade execution

• Trade verification

• Market research

• Monitoring of trading limits

The following categories of are appropriate for the classification of investment in corporate bonds EXCEPT FOR:

• Amortised cost

• FVOCI (with recycling)

• FVTPL

• FVOCI (no recycling)

Based on MFRS 13 fair value hierarchy, which level is appropriate for unquoted bonds

• Level 1

• Level 2

• Level 3

• Level 4

Which option would be bought anticipating an increase in underlying asset price?

• Call Option

• Put Option

Which is not an input for option pricing?

• Strike Price

• Volatility

• Convergence Rate

• Risk Free Rate

Credit defaults swaps acts as a form of insurance policy in case of default

• True

• False

Which is not a benefit of structured product?

• Strategy Accesibility

• Callable Provisions

• Principal Protection

The full conditional coupon is received or paid out if the underlying asset remains within the range determined throughout the observation period

• True

• False