27th Batch Semester III Term End Exam Subject: Treasury Management Total Marks: 50 Duration: 2.5 Hrs.

Instructions: All questions are compulsory. _____________________________________________________________________________ Q.1) Case (20 marks)

Japan is about to launch a stimulus package of $ 61 billion to stimulate its economic growth and exports with what everyone knows as a lost decade for that country. Things do not appear to be rosy politically with China and economically with U.S.A. As a Treasury Head analyse the situation for India from the following angles. 1. 2. 3. 4. Indias lessons from Japans lost decade. Do you think China which has emerged as the second largest economy in the world will face similar problems in future? What is the relationship of weakening of Japanese yen vis--vis Chinese Yuan and the interrelations with $ In the past Japanese economic policies uses to be held as a model and aped, what now?

Q.2)

Questions 1. 2.

(18 marks)

What are various Treasury Assets and liabilities? Describe the risks associated with them. Explain the traditional role of a Treasury and the changes that have taken place since 1991.

Q.3)

Write short notes on any three of the following: 1. 2. 3. 4. FII and share market. Asset bubble Bank liquidity and Govt disinvestment Chinese export competitiveness

(12 marks)

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