MA0042- TREASURY MANAGEMENT

 

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Master of Business Administration- Semester 4

MA 0042/MF 0016 “TREASURY MANAGEMENT”

(4 credits)

(Book ID: B1311)

ASSIGNMENT- Set 1

Marks 60

Q1. Explain treasury management, its need and benefits and treasury exposure. (10 Marks) (350-400 words)

Answer :  The primary market intermediaries are the merchant bankers, underwriters to issue and brokers to issues. The merchant bankers are the issue managers who bring the issues to the primary market investors. Issue management is a tedious job and is closely regulated by SEBI. In many countries, the regulators implement a licensing mechanism for issue management.

Issue management is one of the important fee-based services provided by financial institutions. There are few large-scale and specialised issue

 

Q2. Classify various money market instruments                                  (10 Marks) (350-400 words)

 

Answer : What is money market ?

It’s just a market where money is traded as goods. Pro-active trading happens in these markets when Capital markets (Stock market) are bearish and on a selling spree. Like every market it has buyers, sellers, brokers, etc. It comprises of major financial institutions in India and other fund houses who wish generate money by offering loans and investing. Money market is meant usually for large companies like Reliance, Essar and Government organizations to cope-up with their short term needs. However, individual investors have access to the market through a variety of different securities.

 

Benefits of money market

 

 

Q3. What are the features of ADRs and GDRs?                                       (10 Marks) (350-400 words)

 

Answer : ADRs and GDRsA Depository Receipt (DR) is a versatile financial security that is traded on a local stock exchange but it represents a security that is issued by a foreign publicly listed company. Two of the most common types of DRs are the American Depository Receipt (ADR) and Global Depository Receipt (GDR).

 

ADR is a security issued by a non-U.S. company and is traded on U.S. stock exchanges. ADRs are issued to offer investment methods that

 

 

Q4. Describe ERM and classify the differences between futures and forwards contracts(10 Marks) (350-400 words)

Answer :  ERM

Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization’s objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress.

 

 

Q5. Explain the process of risk management and various tools involved in managing risks (10 Marks) (350-400 words)

 

Answer : The Risk Management Process

Risk Management is defined in the standard (AS/NZS 4360:2004) as “the systematic application of management policies, procedures and practices to the tasks of establishing the context, identifying, analysing, assessing, treating, monitoring and communicating”.

 

It is an iterative process that, with each cycle, can contribute progressively to organisational improvement by providing management

 

 

Q6. Explain the framework for measuring and managing the liquidity risks. (10 marks) (350-400 words)

Answer :  Measuring Liquidity Risk

The earlier section dealt with the risks associated with liquidity, now let us focus on the measurement of liquidity. The framework for measuring and managing the liquidity risk can be divided into three dimensions. They are:

 

• Measuring and managing net funding requirements.

• Managing market access.

• Contingency planning.

 

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call us at :- 08263069601 

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