FMEL 104 Preliminary Exam

It ensures that a company has sufficient cash available at all times to meet the needs of its primary business operations

• Cash Department

• Treasury Department

• Marketing Department

• HR Department

It safeguards the existing assets, which calls for the prudent investment of funds while guarding against excessive losses on interest rates and foreign exchange positions.

• Sales and Marketing Department

• Human Resource Department

• Treasury Management

• Maintenance Department

The principles of management include all of the following EXCEPT

• Planning

• Planting

• Decision-making

• Controlling

The accounting staff generally handles the receipt and disbursement of cash, but the treasury staff needs to compile this information from all subsidiaries into short-range and long- range cash forecasts.

• Cash forecasting

• Working capital management

• Cash management

• Investment management

The treasury staff uses the information it obtained from its cash forecasting and working capital management activities to ensure that sufficient cash is available for operational needs.

• Working capital management

• Cash management

• Investment management

• Treasury risk management

The treasurer should be aware of working capital levels and trends,  and  advise  management  on the  impact  of proposed policy changes on working capital levels.

• Working capital management

• Cash management

• Investment management

• Treasury risk management

One of the responsibilities of the treasury department wherein the treasury staff is responsible for the proper investment of excess funds.

        

• Cash Forecasting

• Working Capital Management

• Cash Management 

• Investment Management

It refers to the activity of identifying risk and reaching a state of risk that is required to achieve desired objectives.

• Risk Management

• Management Advice

• Working Capital Management

• Cash Forecasting

The treasury staff can be an excellent in-house resource for the management  team  should  they  want  to  know  about interest rates that the company is likely to pay on new debt  offerings,  the  availability  of  debt,  and  probable terms that equity investors will want in exchange for their investment in the company

• Risk Management

• Management Advice

• Working Capital Management

• Cash Forecasting

They are responsible for overseeing the management of a company or bank's assets and liabilities.

• Asset-liability committees (ALCOs)

• Front Office

• Mid-Office

• Back Office