Treasury Markets Practice Exam

Treasury Markets Practice Exam

Treasury Management helps manage business finances by handling cash, investments, and other financial assets. The Treasury management system focuses to optimize a company's liquidity, thereby mitigating its financial, operational, and reputational risk. Treasury is a service that exists in every organization. 

A Treasury Market Professional works in the treasury department's cash management and financial products. This certification verifies your knowledge and opens up a world of possibilities for you. The demand for Certified Treasury Market Professionals is growing as they deliver cutting-edge financial solutions to help businesses plan for the future and manage risk.

Who should take this certification?

The Treasury Market Professional credential is for people who want to work in retail banks, investment banks, trading and research, and treasury departments of multinational corporations. Companies that hire Certified Treasury Market Professionals include HDFC, ICICI Bank, Axis Bank, Habsons Jobsup Limited, Kotak Mahindra Bank, and IndusInd Bank.

Roles and Responsibilities of a Treasury Market Professional

A Certified Treasury Market Professional's goal is to secure a company's financial success by managing its money and financial risks. Assessing periodic liquidity needs, determining funding sources, and investing excess cash in capital markets are some of the primary responsibilities of this position. The following are some of their typical responsibilities:

• To begin, they must examine, review, and defend their company's financial well-being.
• Second, make sure your cash flow is sufficient.
• Finally, dealing with daily cash balances and money market transactions.
• In addition, big tasks such as firm refinancing must be managed.

Topics Covered 

The Treasury Market covers the following topics:

1. Introduction

2. Treasury Management

• Roles/Functions of Treasury Management
• Scope of Treasury Management
• Objective of Treasury Management

3. Treasury Risk Management

4. Treasury Policies and Procedures

5. Investment Market and its Operations

• Investment Environment
• Investment Process
• Classification of Investment activities
• Risk and Return
• Financial Market, Participants and Instruments

6. Security Market and Emerging Trends

• Role of SEBI
• Types of Share Market
• Primary Market
• Secondary Market
• Types of shares

7. Portfolio Management

• Portfolio
• Diversification
• Bonds and Debentures

8. Derivatives

• Characteristics of Derivatives
• Types of Derivatives

9. Hedging

• Principles of hedging

10. Depository

• Services offered by a Depository
• Constituents of Depository System
• Dematerialization and Rematerialization

11. Mutual Funds

• Benefits of Mutual Funds
• Setting-up a Mutual Fund
• Procedure to invest in Mutual Funds schemes
• Types of Mutual Funds schemes
• Performance of Mutual Funds

12. Stock Exchange/ Screen Based Trading

• Demutualization of Stock Exchanges
• Types of stock exchanges

13. Foreign Capital issuance

• American Depository Receipt (ADR)
• American depository Shares (ADS)
• Global depository receipts (GDR)

14. Investors protection, Grievance and Education

• Investor Protection Fund/Consumer Protection Fund (IPF/CPF)
• Investors’ Grievances
• Investor’s Education

15. Time Value of Money

• Compounding Techniques

16. Ratio Analysis

• Procedure of Analysis of ratios
• Limitation of Financial Accounting Ratios
• Classification and Calculation of Ratios