QUESTION 10                                                                                                    

Which of the following statements

refers to the purpose of pooling cash into a single

concentration account?

a.   

b.   

To improve cash

and liquidity management from the subsidiaries’ point of view.

c.    

d.   

1. a and b

2.b and c

3. a and c

4.c and d

QUESTION

9

The

most popular method of handling a cash surplus is using capital market

financial instruments.

A.   

True

B.    False 

QUESTION 8

The

yield to maturity associated with the offer is equal to …

a)    7.03%.

b)    7.34%.

c)    7.61%.

d)    7.92%.

FOR QUESTIONS 7 AND 8, REFER TO THE

FOLLOWING INFORMATION:

You

have been presented with the following information about the Treasury Bills

(TBs) that are trading in the secondary market:

Bid/offer

= 7.53%/7.35%

Face

value = R100 000

Days

to maturity = 55

(Note:

Use 365 days.)

QUESTION

7                                                                                                      

Which of the following statements is correct?

a.   

The

price maker is prepared to buy TBs at 7.35%.

b.   

The

price maker is prepared to sell TBs at 7.53%.

c.    

The

above bid would translate into a price of R98,866.

d.   

The

above offer would translate into a price of R98,893.

1.       a and c

2.       a and b

3.       b and c

4.       c and d

QUESTION 6

Match

column A with column B below:

The

correct option/match is …

a,

1. c; 2. d; 3.b

b,

1. d; 2. a; 3.c

c,

1. e; 2. d; 3.c

d, 1. d; 2. e; 3.a

QUESTION 5

McDonald is the most experienced financial officer at

ABC Ltd treasury department. Most of his responsibilities are to ensure that

subsidiaries' bank accounts stay at R450 000 or below. If the subsidiary's

accounts exceed R450 000, the amount by which the account exceeds R450 00 000

is transferred to the head (master account) office account

Which one of the following sweeping strategies is used by McDonald at ABC Ltd?

a.    Predetermine minimum balance

method

b.    Fixed amount sweeping

method  

c.     Threshold sweeping

method

d.    Range-based

sweeping method

QUESTION 4

FOR QUESTIONS 4, REFER TO THE FOLLOWING

INFORMATION:

 You

have been presented with the following information about  Reserve

Bank Debenture (RBD) that has been issued by the South African Reserve

Bank (TBs) to ABSA Bank:

Amount invested/nominal value    =

      R20 million

Issue

date              

                             =       23 April

2025

Maturity date

       =

      13 May 2025

Days                      

           =

      20 days

Interest                  

          =

      9.4 p.a.

(Note: Use 365 days.)

The South African Reserve

Bank must therefore pay … in interest to ABSA Bank at the end of the period.

1. R102 800
2. R152 800
3. R161 800
4. R170 800

QUESTION

3

Which of the following statements correctly describes

the characteristics of the money market instruments?

a.   

The par value of the money market security is the same

as the issue value.

b.   

The issue value is a discounted amount of the par

payable by the investors.

c.    

The yield or actual return is the same as the discount

rate.

d.   

In most cases, the issuance value will be less than

the par value.

1.   

a

and b

2.   

b

and c

3.   

a

and c

4.   

b

and d

QUESTION 2

The discount

value of a Treasury Bill (TB) with a nominal value of

R1 000 000, issued for a period of 80 days at a consideration value of R

 a.    R 18 880, 30.

b.   

R

19 880, 30

c.     R 20 880, 30.

d.    R 21 880, 30.

NB: Use 365 days.

QUESTION 1

A good example of a risk avoidance strategy would be

when Tiger Brand Limited, a manufacturer of fast-moving consumer goods …

a.   

chose

not to do business any longer with countries like Russia and Ukraine, where

there is political uncertainty and war.

b.   

Insures

all the trucks with the Miway insurance company.

c.    

Invest the surplus cash in multiple money market

financial instruments.

d.   

Agree to set a price to sell bread on a predetermined

date in the future, and at the time of delivery, irrespective of the bread’s

current price, Tiger Brand Limited executes the contract at a price agreed

upon.