Treasury Markets

If you are looking for a job in Treasury Markets, these interview question and answers will guide you to prepare for you next job.

Q.1 Which financial management software do you recommend, and why do you favor it?
By far, Quicken is my personal favorite financial software management pack. It is easy to use, has ubiquity, the ability to interface with banking and credit card applicability, and the portability of the data it provides.
Q.2 What are the forms of investment?
Certificate of Deposit. Stocks. Fixed Deposits. Real Estate. Mutual Funds. Bonds. Public Provident Fund (PPF), etc.
Q.3 What are the arrangements of investment?
As an investor, we have many options for where to place our money. It's necessary to consider types of investments correctly. Generally, investments are bucketed into 3 primary categories: bonds, stocks, and cash equivalents. There are various distinct types of investments within the specific bucket.
Q.4 What are the 3 kinds of investors?
There are 3 types of investors: passive investor, pre-investor, and active investor.
Q.5 Who are significant associates in financial markets?
The major associates in the money market are governments, commercial banks, corporations, money market mutual funds, government-sponsored enterprises, brokers and dealers, futures market exchanges, and the Federal Reserve. Commercial Banks play 3 significant characters in the money market.
Q.6 What are the 4 financial market participants?
Banks, governments, brokers, market makers, central banks, and us– the retail trader.
Q.7 What is the position of SEBI in the stock exchange?
SEBI is India's stock market controller, that is, it creates rules and regulations that surely comprehend the stock market. The purpose of SEBI and strives to stock exchange construction, defend the interests of retail investors, and coordinate market participants' movements and financial intermediaries.
Q.8 Tell us about a moment when you had trouble enforcing a financial regulation.
The most challenging financial management I have had to enforce in the institutions for which I managed was the low period before a corporation’s financial broadcasting. Company directors and other workers were likely to talk about the consequences the firm was going to declare, principally if they were positive. This debauched SEC regulations. To prevent this behavior, I taught the whole company about the threat of doing this and the constitutional ramifications of unauthorized information.
Q.9 What is the purpose of SEBI in India?
SEBI is a statutory governing body placed on the 12th of April, 1992. It observes and dominates the Indian capital and security market while assuring to preserve the value of the investors, building guidelines and regulations.
Q.10 Name 4 types of stocks.
Growth stocks. Dividend aka yield stocks. New issues. Defensive stocks.
Q.11 Who controls SEBI India?
SEBI is run by a board of directors, including a chair who is elected by the parliament, two officers from the Ministry of Finance, one member from the Reserve Bank of India, and five members who are also elected by the parliament.
Q.12 What are long-term financial means?
Long-term finance can be described as any financial means with a maturity surpassing one year (such as bonds, bank loans, leasing, and other kinds of debt finance), and private and public equity instruments.
Q.13 Is SEBI under RBI?
The (SEBI) Securities and Exchange Board of India is the governing body for the securities and commodity markets in India under the control of the Ministry of Finance, Government of India. It was founded on 12 April 1992 and given Sanctioned Powers on 30 January 1992 by the SEBI Act, 1992.
Q.14 What knowledge do you have maintaining risk, and in hindsight, what would you have prepared differently?
As a treasurer, one of my main responsibilities is to maintain the business risk of the company. I perform this by checking any expenses the company is holding, increasing both our investments and the origins of capital we utilize, and teaching the team about financial reliability and the proper actions they can and cannot perceive.
Q.15 Explain Portfolio management.
Portfolio management is the collection, prioritization, and administration of an organization’s programs and projects, in order with its important objectives and potential to deliver.
Q.16 Which sort of share is best?
Preferred stock prices are short volatile than current stock prices, which indicates shares are scarce prone to a missing value, but they're also less prone to getting value. In common, preferred stock is most suitable for investors who prioritize gains over long-term growth.
Q.17 Define Hedging.
Hedging is a risk control strategy used to offset declines in investments by choosing an opposite belief in a related asset.
Q.18 Do you have any involvement with investment funds? If so, what kinds?
I have experience with investment stocks. I have practiced these as a reference of the company’s capital on various occasions. When assessing investment funds, I recognize not only the financial components of a fund but also the administration philosophy and their records of investing in organizations similar to ours. I make certain the fund’s business goals adjust with those of the company.
Q.19 How do you hedge a trade?
Hedging in trading is where we open a position that works against a contemporary open position. So, if we have an open long situation on Apple, and then request to short Apple as we believe its cost will fall, we can then hedge Apple by presenting a new compressed position. Both conditions will then be open together.
Q.20 According to you what is the most important role of a treasurer?
According to me the most important role of a treasurer is that he acts as gate keeper of the efficient cash and funding with mitigating all financial risk associated and maximizing the overall profit.
Q.21 What are non-convertible debentures?
Nonconvertible debentures are primarily unsecured bonds that cannot be converted to company equity or stock. In general, non-convertible debentures have higher interest rates than convertible debentures.
Q.22 What is a junk bond?
Also referred as a high-yield bonds or Speculative bonds is a bond rated lower because of its high default risk. Usually, junk bonds offer interest rates of 3-4 percentage points higher than safer government issues.
Q.23 What is your greatest strength and it assist to be a successful treasury manager?

Sample Answer - 

One of my greatest strenght is my integrity and strong moral principles that motivates me to be more focused and give 100% output. 

Q.24 What are your future goals as a treasurer?
You may answer this by saying that you wish to maintain the same fundamentals of Treasurer such as the requirement of being well-kept and having the ability to make decisions for the good of the company. Also you can continue to give support and effort for company benefits.
Q.25 How do you ensure that confidential information is secure and private?
The purpose of the interviewer is to check your work ethics and goals towards the profile. In this case you may cite examples to support your answer. Sample Answer - In my previous role as a finance intern there is information such as staff loans etc that is required to be kept confidential. I understand the importance to maintain confidentiality and keep the information secure.
Q.26 What does Bid refer to?
A Bid refers to Buyer's price
Q.27 What does 'Ask' refer to?
Ask' refers to Seller's Price
Q.28 What does call option refer to?
A call option refers to buy stock at a specified price
Q.29 Which instrument gives the holder right to vote being the member of the company?
Equity Share holder given the right to vote being the member of the company.
Q.30 How would you define the process of treasury management?
Treasury Management can be said to be a process of planning, controlling, organizing, and holding, funds, and working capital of the business in order to create the best use of the funds, manage the firm's liquidity, decrease the whole cost of funds, and minimize operational and financial risk.
Q.31 Which funds do not have a fixed redemption date?
Open ended funds do not have a fixed redemption date.
Q.32 What are the functions of treasury management?
One of the major functions of treasury management is to define the appropriate levels of cash or cash equivalents to enable businesses the capability to satisfy their financial needs. Having a (TMS) treasury management system in place is important to make sure that a business successfully maintains its financial risk.
Q.33 What is the role of the treasury staff in the government?
The major function of treasury management is to formulate levels for cash from acquisitions, donations, grants, and borrowings so that government can satisfy its financial needs, grants, and loan repayments on time.
Q.34 Explain treasury management in banking.
Treasury Management is an operation that allows us to streamline our payments and collections methods, also to handling liquidity, to solve the working capital difficulties treasury professionals face today.
Q.35 What are the advantages of treasury management?
Increase in productivity. Real-time and accurate data availability. Decrease in standard entry and calculation errors. Restrict redundant banking and FX detriments. Specific activity monitoring.
Q.36 Why is treasury management significant?
A treasury management system outshines streamlining and automating manual methods and slow data management responsibilities, consequently boosting the overall regular productivity. Automated signature and payment initiation eliminate organizational bottlenecks and support less location dependence.
Q.37 Describe your bookkeeping knowledge, including any software you’ve used.
In the method of obtaining my degree in accounting, I studied to keep various ledger types to make income reports and balance sheets and to assign checks. I am also adept at maintaining accounts receivable and accounts due. I consider myself experienced in practicing CAPIX and QuickBooks.
Q.38 What are the best practices of treasury management?
Composition and Compensation. Communicate Effectively. Shop Around. Develop an ERP and Take the Time to Get It Right.
Q.39 Which type of risk is controlled by Treasury Management?
The principal financial uncertainties for which treasury is responsible can be categorized into Liquidity risk (i.e. availability of funds) Price risk (i.e. commodity price risk) Credit risk (i.e. financial loss).
Q.40 Describe SAP Treasury Management.
SAP Treasury and Risk Management is a range of solutions that are equipped for investigating and optimizing business methods in the finance operation of a company. It also incorporates mechanisms for measuring risk and returns structures, consisting of exposure, sensitivities, future values, and value at risk.
Q.41 What is the difference between treasury and financial management?
We can say that treasury management is a division of financial management, which is concerned with the administration of a firm's capital and funds. Financial Management applies to the managerial action, that stresses the management of a firm's financial resources, to obtain the whole purpose of the enterprise.
Q.42 As a treasury manager, what will be your management style?
The situational style will be safe because it says I will operate according to the situation.
Q.43 What are the principal activities incorporated by treasury management?
Cash forecasting. Cash concentration. Investments. Working capital monitoring. Fundraising. Grant credit. Risk management.
Q.44 Explain the mechanisms of treasury management.
Liquidity Manager. Foreign Exchange and Interest Rates. Monitoring Other Financial Entities. Cloud Computing.
Q.45 Describe treasury activities.
Treasury Management involves a firm's acquisitions, concentration, disbursements, investment, and funding pursuits. In more substantial firms, it may also incorporate financial risk management.
Q.46 What are your long-term career objectives in finance?
My purpose within your business is to get this position and work with the personalities in the finance department to become an essential team player. I desire to work my step up and learn the business, eventually going into a management position
Q.47 What is treasury policy?
A treasury policy is described as a company's acknowledgment of a financial risk like FX, commodity, counterparty, interest rate, liquidity, or funding risk.
Q.48 What do Treasury Services cause?
Treasury services concentrate and invest client money, and gives trade finance and logistics resolutions as well as protection, values, clears, and services contracts and documents for broker-dealers and investors. Treasury Services is a transaction-intensive and system-intensive business.
Q.49 How would you describe liquidity to a person who doesn’t have finance knowledge?
Whenever I explain complicated financial methods to people who don’t have financial knowledge, I make certain I try to hold the conversation simple and to the object. I dodge using jargon or any technology people who don’t operate in finance are not confidential with. When explaining liquidity, I talk about admittance to the time frames, funds, and the capability to create decisions and take steps without much failure or delay.
Q.50 How can treasury operations be developed?
Increase the cash flow forecasting. Arrange for all potential risks. Institute effective governance systems. Exercise quality control. Build on the external professional relationships.
Q.51 What are the fundamental principles of cash management?
It increases the pace of collecting receivables. Keep inventory levels under. Delay payment of liabilities.
Q.52 What are some methods we can utilize to raise capital for a company?
There are many various methods we can practice to raise capital for a business. These involve debt in a diversity of different kinds of equity. The system I prefer depends on why the business requires the funds and what they plan to prepare with them. If the reserves are to be utilized for short-term operational culmination, I favor debt in the formation of a short-term loan. If the funds are required for investments or capital purchases, I then resemble at long-term debt or issuing equity in the firm.
Q.53 What are the 5 diverse kinds of cash management tools?
It includes savings accounts, checking accounts, certificates of deposit, money market deposit accounts, and savings bonds.
Q.54 How does Treasury Management reduce losses?
Treasury managers try to reduce losses by using risk alteration and hedging methods that change the internal management of the organization. Options, futures, and swaps are several of the main derivative instruments, the Treasury Managers practice to hedge their uncertainties.
Q.55 What is the investment environment?
The investment environment is the global economy and the national economy, developments that have an impact on the values (prices) of the assets of the asset classes.
Q.56 What information do you prefer to utilize to handle risk associated with interest rates?
There are several different ways we can handle interest rate risk. These incorporate hedging, diversification, and leveraging commercial instruments with the fixed interest rates. We can also adjust loans among both long- and short-term debt.
Q.57 What does investment climate indicate?
Investment climate relates to the financial, economic, and socio-political circumstances in a region or country that influence whether banks, individuals, and institutions are ready to lend and take a stake in the businesses working there.
Q.58 Explain investment process.
An investment method is a collection of guidelines that administer the performance of investors in a way which enables them to continue faithful to the beliefs of their investment philosophy, that is the fundamental principles which they believe to facilitate outperformance.
Q.59 What qualities execute a good treasurer?
Be competent in managing figures and cash Have an uncluttered mind and systematic way of thinking Have practiced in distributing with considerable sums of funds and budgets Have involvement in financial controller and budgeting
Q.60 What is the distinction between a treasurer and an accountant?
The obligation of accounting is to preserve assets. It retains track of everything by sustaining precise accounts so that everyone can know possible resources. The duty of the treasury is to take care of the financing.
Q.61 How do you present a treasurer's report?
As treasurer, one will present the treasurer's record verbally at the meeting. Keep this oral report short and concise. All that needs to be stated in the beginning balance this month (or quarter or another period), the total expenses, the total income, and the ending balance this month.
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