DAIBB 

Treasury Management(TM)

Time-3 hours

Full marks-100

Pass marks-50

[N.B.—The figures in the right margin indicate full marks. Answer any five questions.]

                Marks

1 (a) What does a bank's treasury do?                                                            5

   (b) What should be the working strategies. for an efficient treasury  department in banks?   .    5          

   (c) What funding and lending strategies would treasury department recommend to the ALCO during           the different phases of the business Cycle?                                  10

2. (a) Describe liquidity risk with example.

  (b) How do you manage liquidity risk?

  (c) Describe the integrated treasury management system in terms of meaning, functions and structure.

3. (a) What are the responsibilities of the front office, mid office and back office of the treasury department of a bank?                         10

(b) How the treasury department of a bank is regarded as a profit  center?    10

4 (a) What do you mean: by Real Time Gross Settlement (RTGS)  system?  Explain the advantages of RTGS used by Bangladesh Bank. 

  (b) Electronic payments can involve large amounts of money and so require a stringent set of controls- to.mitigate the risk: of loss'—Describe the control mechanism. 

5 (a) Give brief explanation of your views.   

(b) Discuss in brief the prospects and problems of commodity price hedging in Bangladesh.       

6 (a) 'Foreign exchange market also refers to the global market   where currencies are traded virtually around the clock' --Explain in brief.                10

b) Define the term 'Swap'.     4

c) Give brief description of various types of swaps.      6

[Please turn over]