Treasury Management in Banking

Q1: Sneha had just completed her MBA and was placed in a bank. She was
appointed to manage the foreign exchange department. Her manager had asked to
prepare a short report on various exposures she would be facing while handling
foreign exchange transactions. Help her to prepare the report keeping in mind key
exposures. (10 Marks)

Ans: Solution by DistPub. Send email to distpub@gmail.com

Q2: ABC Ltd had recently made fresh recruitments for the position of Treasurer and
Controller. If you are their reporting manager, prepare a report of their job
responsibilities, keeping in mind they have completed their post graduation in
Finance. (10 Marks)

Q3: The manager of a bank wants to analyse the post effects of increasing the
interest rate from 6% to 7% on the value of assets and liabilities. The current asset
value of the bank is 250 lacs and the current liability value is 240 lacs. Average
duration of assets is 4.2 and average duration of liabilities is 1.1. Calculate the
change in the value of:

a) Assets (5 Marks)

b) Liabilities (5 Marks)