2eo acaferat-y> ‘THE INSTITUTE OF BANKERS, BANGLADESH (BB) 96'" Banking Professional Examination, 2023 AIBB ‘Treasury Management in Financial Institutions (TMF1) Subject Code [2[o[s] Time—3 hours Full marks—100 Pass marks—45 IN.B. The figures-in the right margin indicate full marks. Answer any five questions.) 7 Marks. 4 ) What is the meaning of Integrated Treasury? What are the 5 benefits of it? (4) Briefly describe the functions of Integrated Treasury. 10 (c) Distinguish between money market and Foreign Exchange 5 Market. ie 1) What is money? Briefly describe the functions of money. 6 ) Briefly describe money market instruments available in 1 Bangladesh. : (g How do you calculate the liquidity in the money market for a 7 particular month in Bangladesh? What is the money market liquidity condition in Bangladesh.” [? ‘What are the components of demand and time liabi ies ofa 10 bank? (b) Briefly describe CRR and SLR in the contest of Bangladesh. 10 Why are they maintained? ) 4. (@) Define foreign exchange rate. What are the reasons for foreign 10 exchange rate fluctuations? (b) Briefly explain the three types of foreign exchange risk. 6 (c) Company A, based in Canada, reports its financial statements in 4 Canadian Dollars (CAD), but conducts business in the USA in US Dollars (USD). The USD/AD exchange rate was 1-50, meaning 1-5 CAD could be obtained by 1-00 USD, when the company reported its QI’ financial results. However, the exchange rate is now 1-25, when the company reports its Q2 financial results. Is it an example of transaction tisk, economic .risk, oF translation risk? Explain briefly- [Please turn over Scanned with CamScanner(@) Define Liquidity Management. What is Net stable Funding Ratio (NSFR)? i (0) What is ALCO? What are the major Fesponsibilities of ALCO? (©) Mention the key roles and responsibilities of ALM Desk. @ ior the elements of a typical Contingency Funding Plan FP). (@) Define derivatives. Briefly describe the risks associated with derivatives, (6) “Option give the option-holder the right, but create obligation for the option-seller.”—Explain in light of call option and put option with example. (©) What is Interest Rate SWAP? Explain how it works with an example. (@) What are the key features of fixed income securities? Briefly describe the types of fixed income securities. (b) Define primary Dealers and state their objectives. Discuss the roles and responsibilities of a primary Dealer. (c) What considerations must be made before investing in a perpetual bond. (@) Discuss the importance of risk management and risk analysis process from the viewpoint of a tracery manager. (6) Describe the key principles of BASEL II. (c) ABCD Bank had posted interest revenues of Tk. 63 million and interest wasts from all of its borrowings of Tk. 42 million. If the bank possess Tk. 700 million in total earning assets, what is ABCD Bank’s net interest margin. 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