Summer 2013

Master of Business Administration - MBA Semester 4 MF 0016 Treasury Management 4 Credits (Book ID: B1311) Assignment- 60 marks
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q1. Consider yourself as a chief financial officer, describe the treasury functions that (7
you handle and discuss how you will formulate the treasury policy. ( explanation of treasury functions-5 marks; explanation of treasury policy-5 marks) 10

marks Q2.
The NCDEX trading system provides a fully automated screen based trading for futures commodities on basis of nationwide online monitoring and surveillance mechanism. Discuss explain the concept of commodity market, role of regulator and players. (concept of commodity market - 3 marks; role of regulator - 3 marks; players - 4 marks)

10 marks Q3. Consider yourself as a CEO of an automobile company in India, Which tool will
you adopt to minimise risk occurring in the production process. (explanation of risk management - 3 marks, explanation of process of risk management - 4 marks; explain tools used to minimise risks - 3 marks) 10 marks Q4. Suppose you are the CEO of MS Bank Corporation. Your bank is facing interest rate risk, which has affected its operation significantly. Discuss the factors that influence the level of market interest rate. (explanation of interest rate risk - 4 marks; explanation of various types of products/ credit facilities offered - 6 marks) 10 marks

Q5. The treasury maintains the bank funds, it automatically surrounds liquidity and
interest rate risks. Discuss the relationship between treasury and ALM (explain treasury-3 marks; explain ALM-3 marks; explain the relationship between treasury and ALM 4marks) 10 marks

Q6. ALM deals with strategic balance sheet management, which involves various
risks, caused due to the changes in exchange rates and the position of liquidity, interest rates in the organisation. Discuss how the ALM contributes to the risks in balance sheet management. (explanation of ALM- 3 marks; explanation how the ALM contributes to the risks in balance sheet management-7marks) 10 Marks