Treasury Management Quiz: Advanced Level
This treasury management quiz is the advanced half of the treasury pair. It is written for treasury officers, finance leads and founders who already run cash, banks and payments, and it asks what you would do when the numbers look fine and are not.
Pick an answer for each question. A correct answer shows why it is right; a wrong one is marked incorrect and you can try again. Your score counts first attempts only.
How Well Do You Understand Treasury Risk, Liquidity, and Controls?
00 / 10 answeredScore 0
Question 1. A company has US$2 million in total cash, but US$1.6 million is trapped in a country with capital controls and payroll of US$900,000 is due tomorrow in the U.S. What is the best treasury concern?
Question 2. A company must pay EUR 5 million in 60 days but earns revenue mostly in USD. What is the main treasury risk?
Question 3. What is the purpose of a liquidity buffer?
Question 4. A treasury officer sees that collections are delayed by 20 days while supplier payments remain due on time. What is the likely impact?
Question 5. A company keeps large balances at one bank because it is convenient. What risk should treasury consider?
Question 6. What is a covenant in a treasury or debt context?
Question 7. A company has floating-rate debt and interest rates are rising. What treasury issue does this create?
Question 8. Why is segregation of duties important in treasury payments?
Question 9. What is the main treasury reason to perform bank account rationalization?
Question 10. A forecast shows enough cash for the month, but it assumes a large customer will pay on day 5. That customer usually pays 30 days late. What should treasury do?
What the treasury management quiz covers
Liquidity by location, currency, access and timing, not total cash
FX exposure on a future payment, and interest-rate risk on floating-rate debt
Liquidity buffers, delayed collections and working capital pressure
Counterparty concentration risk and bank account rationalization
Loan covenants
Segregation of duties and stress-testing a cash forecast
How to read your score
Your score is the number of questions you answered correctly on the first try, out of 10.
9 or 10: You know this material well. Try a harder quiz in the series, or the FX arithmetic one.
6 to 8: A solid working knowledge with a gap or two. Re-read the explanations for the questions you missed.
3 to 5: The basics are there. The explanations are written to fill exactly these gaps, so take the quiz again tomorrow.
0 to 2: Start with the entry-level quiz and the glossary, then come back to this one.
For the primary source behind several of these questions, see Basel Committee: Principles for Sound Liquidity Risk Management and Supervision.
More quizzes and further reading
Ten more quizzes in the series, from entry level to FX arithmetic:
Further reading on this site: