CCM Treasury Operations and Banking Relations

Question 1

What is the primary role of a treasury department in a corporation?

Accepted Answer

Managing liquidity and financial risks

Answer

Preparing tax returns

Answer

Setting product prices

Answer

Conducting internal audits

Question 2

Which banking service helps companies concentrate cash from multiple accounts into one?

Accepted Answer

Cash concentration

Answer

Lockbox service

Answer

Reconciliation service

Answer

Merchant services

Question 3

Which of the following describes a notional pooling arrangement?

Accepted Answer

Offsetting balances virtually without fund transfers

Answer

Transfer of funds between accounts daily

Answer

Setting up multiple bank accounts

Answer

Converting receivables into cash

Question 4

What is the purpose of a lockbox service in treasury management?

Accepted Answer

To centralize cash receipts and speed up processing

Answer

To reconcile payroll accounts

Answer

To improve vendor payment terms

Answer

To provide employee reimbursements

Question 5

Which of the following is most critical in evaluating banking relationships?

Accepted Answer

Services offered and relationship value

Answer

Location of the bank branches

Answer

Bank’s marketing campaigns

Answer

Size of the bank's ATM network

Question 6

Which type of account allows companies to manage international cash efficiently across currencies?

Accepted Answer

Multicurrency account

Answer

Demand deposit account

Answer

Money market account

Answer

Zero balance account