Certified Treasury Markets

Professional
VS-1016

Certified Treasury Markets Professional

www.vskills.in


Certified Certified Certified Certified Treasury Markets Professional Professional Professional Professional
Certification Code VS Certification Code VS Certification Code VS Certification Code VS - -- - 1016 1016 1016 1016
Vskills certification in Treasury Markets introduces candidates to functions of a Treasury
Department in a bank or corporate. Te Certification also co!ers !arious financial
products in te treasury department and te risk mana"ement tecni#ues used in te
treasury. $ Vskills Certified treasury market professional finds employment in !arious
retail banks% in!estment banks% researc firms% and treasury departments of !arious M&Cs.


'y sould one take tis certification( 'y sould one take tis certification( 'y sould one take tis certification( 'y sould one take tis certification(
To demonstrate clear understandin" of treasury markets% risk mana"ement and !arious
financial products traded in te treasury and to "et a !isible reco"nition for tis kno)led"e
'o )ill benefit 'o )ill benefit 'o )ill benefit 'o )ill benefit from takin" tis certification( from takin" tis certification( from takin" tis certification( from takin" tis certification(
Students lookin" to find employment in treasury departments of banks and corporate
treasuries% traders of !arious financial products% researc analysts% teacers of finance%
mana"ers of companies )o )is to understand !arious risk mana"ement products% o)ners
of small and medium enterprises )o )ant to a!e a better control o!er teir cas
mana"ement and anyone a!in" interest in te Treasury Markets.
Test Details* Test Details* Test Details* Test Details*
Duration* Duration* Duration* Duration* 60 minutes
&o. of #uestions* &o. of #uestions* &o. of #uestions* &o. of #uestions* +0
Ma,imum marks* Ma,imum marks* Ma,imum marks* Ma,imum marks* +0% Passin" marks* -+ .+0/01 Tere is no ne"ati!e markin" in
tis module.
2ee Structure* 2ee Structure* 2ee Structure* 2ee Structure*
3s. -%0004- .5ncludes all ta,es0
Companies tat ire Vskills Certified Companies tat ire Vskills Certified Companies tat ire Vskills Certified Companies tat ire Vskills Certified Treasury Markets Professional Treasury Markets Professional Treasury Markets Professional Treasury Markets Professional
Vskills Certified Treasury Market Professionals mi"t find employment in banks treasury
departments% tradin" and researc% re"ional treasuries of bi" banks. Tere is an
employment scope in te corporate treasuries of bi" companies as )ell to mana"e "eneral
risk e,posure.




Certified Treasury Markets Professional

www.vskills.in


Table of Content
1. 5ntroduction 1. 5ntroduction 1. 5ntroduction 1. 5ntroduction
Treasury Market
-. Treasury Mana"ement -. Treasury Mana"ement -. Treasury Mana"ement -. Treasury Mana"ement
3oles42unctions of Treasury Mana"ement
Scope of Treasury Mana"ement
6b7ecti!e of Treasury Management
Treasury Risk Management
8 88 8. Treasury Policies and Procedures . Treasury Policies and Procedures . Treasury Policies and Procedures . Treasury Policies and Procedures
Working capital Policy and Procedure
Cash Management Policy and Procedure
Inventory Management Policy and Procedure
Related Party Transaction Policy and Procedure
Foreign Exchange Measurement Policy and Procedure
Managing Bank Relationship Policy and Procedure
Merchant Accounts Policy and Procedure
Letters of Credit Policy and Procedure
9 99 9. 5n!estment Market and its 6perations . 5n!estment Market and its 6perations . 5n!estment Market and its 6perations . 5n!estment Market and its 6perations
5n!estment :n!ironment
5n!estment Process
Classification of 5n!estment acti!ities
3isk and 3eturn
2inancial Market, Participants and Instruments
+ ++ +. Security Market and :mer"in" Trends . Security Market and :mer"in" Trends . Security Market and :mer"in" Trends . Security Market and :mer"in" Trends
3ole of S:;5
Types of Sare Market
Primary Market
Secondary Market
Types of shares
6 66 6. Portfolio Mana"ement . Portfolio Mana"ement . Portfolio Mana"ement . Portfolio Mana"ement
Portfolio
Di!ersification
;onds and Debentures
Certified Treasury Markets Professional

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< << <. Deri!ati!es . Deri!ati!es . Deri!ati!es . Deri!ati!es
Caracteristics of Deri!ati!es
Types of Derivatives
= == =. >ed"in" . >ed"in" . >ed"in" . >ed"in"
Principles of ed"in"
? ?? ?. Depository . Depository . Depository . Depository
Ser!ices offered by a Depository
Constituents of Depository System
Demateriali@ation and Rematerialization
1 11 10 00 0. Mutual 2unds . Mutual 2unds . Mutual 2unds . Mutual 2unds
;enefits of Mutual 2unds
Settin"-up a Mutual 2und
Procedure to in!est in Mutual 2unds scemes
Types of Mutual 2unds scemes
Performance of Mutual 2unds
1 11 11 11 1. Stock :,can"e4 Screen ;ased Tradin" . Stock :,can"e4 Screen ;ased Tradin" . Stock :,can"e4 Screen ;ased Tradin" . Stock :,can"e4 Screen ;ased Tradin"
Demutuali@ation of Stock :,can"es
Types of stock e,can"es
1 11 1- -- -. 2orei"n Capital issuance . 2orei"n Capital issuance . 2orei"n Capital issuance . 2orei"n Capital issuance
$merican Depository 3eceipt .$D30
$merican depository Sares .$DS0
Alobal depository receipts .AD3)
1 11 18 88 8. 5n!est . 5n!est . 5n!est . 5n!estors protection% Arie!ance and :ducation ors protection% Arie!ance and :ducation ors protection% Arie!ance and :ducation ors protection% Arie!ance and :ducation
5n!estor Protection 2und4Consumer Protection 2und .5P24CP20
5n!estorsB Arie!ances
5n!estorBs :ducation
1 11 19 99 9. Time Value of Money . Time Value of Money . Time Value of Money . Time Value of Money
Compoundin" Tecni#ues
Certified Treasury Markets Professional

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1 11 1+ ++ +. 3atio $nalysis . 3atio $nalysis . 3atio $nalysis . 3atio $nalysis
Procedure of $nalysis of ratios
Cimitation of 2inancial $ccountin" 3atios
Classification and Calculation of 3atios
Certified Treasury Markets Professional

www.vskills.in


Course 6utline Course 6utline Course 6utline Course 6utline

Dnderstand te functionin" of a treasury market
:,plain te need and purpose of plannin"% or"ani@in" and controllin" of cas and
borro)in" by te means of treasury mana"ement
:,plain te role4functionin" of treasury mana"ement
Describes te and te scope of treasury mana"ement functions and te ob7ecti!e of
treasury mana"ement
Distinction bet)een financial mana"ement and treasury mana"ement
:,plains te risk in!ol!ed in Treasury mana"ement suc as symmetric% asymmetric
and market risk.
Describes te treasury policies and procedures suc as )orkin" capital policy% cas
mana"ement policy% in!entory mana"ement policy% related party transaction policy%
forei"n e,can"e mana"ement policy% mana"in" bank relation policy% mercant
account policy and letter of credit policy.
Dnderstand te 5n!estment en!ironment% in!estment process% moti!es of
in!estment and te !arious factors of sound in!estment
Classification and distinction bet)een different in!estment acti!ities
:,plains te concept of risk and return )en in!estin" in financial market
Dnderstand te current financial system% classification of 2inancial markets%
members in te financial market and te !arious financial instruments used in te
2inancial Market
Describes te Security Market and :mer"in" Trends% metods of issuin" securities
.Public issue trou" prospectus% offer for sale% pri!ate placement% offer trou"
book-buildin" process
Dnderstand te )orkin" of te primary market% metods of issuin" securities in
primary market
:,plains te process of 5nitial Public 6ffer .5P60% metod of applyin" 5P6%
allotment of sares in 5P6 sales
Dnderstand te )orkin" of te secondary market% listin" and delistin" of securities
Dnderstand te distribution of Capital4Sares in an or"ani@ation
Dnderstand te procedure of Portfolio Mana"ement% need and benefits of
di!ersification
:,plain te !arious Debt instruments issued in te financial market and its features
Describes te issue of ;onds and Debentures under primary and secondary market
:,plains te caracteristics and features of deri!ati!es
Dnderstand te functionin" of te !arious types of financial deri!ati!es suc as
for)ards% futures% options and s)aps
Distinction bet)een futures and options
:,plains te need and principles of >ed"in"
Describes te need of a depository% ser!ices offered by a depository and te
constituents of te depository system
:,plains te concept and need for Dematerialisation and 3ematerialisation
Certified Treasury Markets Professional

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Dnderstand te benefits of in!estin" in mutual funds% procedure of settin"-up a
mutual fund% types of mutual funds and te performance e!aluation of mutual
funds
Dnderstandin" te different types of stock e,can"e% e,plains te tradin" system of
&S: .&:$T 0
Describes te dra)back of not tradin" on a reco"ni@ed stock e,can"e
:,plains te concept of forei"n capital issuance and e,plains te functionin" of
$D3% $DS and AD3
:,plains te "uidelines issued by S:;5 to for 5n!estors Protection% te procedure
to resol!e te in!estors "rie!ance and educatin" te in!estor about its ri"ts and
responsibilities
Dnderstand te !arious compoundin" tecni#ues to e!aluate present and future
!alue of money
:,plains te procedure of e!aluatin" financial accountin" ratios suc as li#uidity
ratios% le!era"e ratios% profitability ratios and market !alue ratios.
Certified Treasury Markets Professional

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Sample Euestions Sample Euestions Sample Euestions Sample Euestions

1. 1. 1. 1. :arnin"s Per Sare .:PS0 is calculated by FFFFFFFFF. :arnin"s Per Sare .:PS0 is calculated by FFFFFFFFF. :arnin"s Per Sare .:PS0 is calculated by FFFFFFFFF. :arnin"s Per Sare .:PS0 is calculated by FFFFFFFFF.
$. Aross Profit 4 &o. of e#uity sareolders
;. &et Profit 4 &o. of e#uity sareolders
C. Aross Profit 4 &o. of 6rdinary sares outstandin"
D. &et Profit / No. of Ordinary shares outstanding

-. Te future !alue of a 3s.10%000 in!estment done today% )ic "i!es an annual -. Te future !alue of a 3s.10%000 in!estment done today% )ic "i!es an annual -. Te future !alue of a 3s.10%000 in!estment done today% )ic "i!es an annual -. Te future !alue of a 3s.10%000 in!estment done today% )ic "i!es an annual
rate of rate of rate of rate of return of -0/ per annum% after one year sould be FFFFFFFFF return of -0/ per annum% after one year sould be FFFFFFFFF return of -0/ per annum% after one year sould be FFFFFFFFF return of -0/ per annum% after one year sould be FFFFFFFFFFFF. FFF. FFF. FFF.
$. 3s.1-%000
;. 3s.1-%-+0
C. 3s.1-%+00
D. 3s.1-%600
8. 8. 8. 8. 'ic of te follo)in" is not true about $D3( 'ic of te follo)in" is not true about $D3( 'ic of te follo)in" is not true about $D3( 'ic of te follo)in" is not true about $D3(
$. $D3 represents te forei"n sares of te company eld on deposit by a custodian bank
in te companyGs ome country.
;. $n $D3 is a D.S. dollar denominated form of e#uity o)nersip in a non-D.S.
company.
C. $D3s do not eliminate te currency risk associated )it an in!estment in a non-D.S.
company.
D. $D3s may be used in public or private markets inside or outside US.
9. 'at does Demutualisation of 9. 'at does Demutualisation of 9. 'at does Demutualisation of 9. 'at does Demutualisation of stock e,can"es refer to( stock e,can"es refer to( stock e,can"es refer to( stock e,can"es refer to(
$. Te le"al structure of an e,can"e )ereby te o)nersip and te mana"ement at
te e,can"e are se"re"ated from one anoter
;. Te le"al structure of an e,can"e )ereby te o)nersip% te mana"ement and te
tradin" ri"ts at te e,can"e !ests in one person
C. Te le"al structure of an e,can"e )ereby te o)nersip% te mana"ement and te
tradin" ri"ts at te e,can"e are se"re"ated from one anoter
D. &one of te above
+. $rbitra"eurs are one of te FFFFFFFF in te deri!ati! +. $rbitra"eurs are one of te FFFFFFFF in te deri!ati! +. $rbitra"eurs are one of te FFFFFFFF in te deri!ati! +. $rbitra"eurs are one of te FFFFFFFF in te deri!ati!es markets. es markets. es markets. es markets.
$. Participants
;. 5ntermediaries
C. Members
D. &one of the above
Answers: 1 (D), 2 (A), 3 (D), 4 (C), 5 (A)