TREASURY MANAGEMENT QUIZ#2

1. One of the Cash Concentration Benefits is that the company is easier to allocate the cash into short-term, low-yield investments and higher yield and longer term investments.

2. An inefficient arrangement from the perspective of cash management.

3. Sets the requirements for the banking industry, and requiring of sending the reports for transfer between resident and non- resident accounts.

4. Mechanism for calculating interest on the combined credit and debit balances of accounts.

5. A key focus of this activity is to prevent OVERDRAFTS.

6. A subsidiary account that allowed a target cash balance.

7. A places for responsibility cash concentration on a specific group within the company.

8. A company shall engage in cash concentration with a physical sweeping strategy.

9. A company shall engage in cash concentration with a gross-currency notional pooling strategy.

10. The amounts of cash swept into and out of a subsidiary account must be tracked in order to properly allocate the correct proportion of interest income to that account.