CPFO Treasury and Investment Management | 353 Questions and Answers with complete solution

reasury management - involves the management of cash from the time revenue is earned to the time an expenditure payment clears the bank All cash management decisions should be made with considerations of - legality, safety, liquidity, and yield Treasury management includes the systems and operating cycles - Establishing policies - is part of the systems cycle Forecasting cash flows is part of the - operating cycle Both internal and external players are included in - treasury management processes Risk - is defined as the possibility of loss Normally, the greater the risk taken, the - greater the potential return Treasury management goals are constrained by - politics, past practices and unwillingness to change, and the amount of risk The most common cash management policy is - the investment policy Politics - can play a part in the selection and maintenance of banking relationships More than one bank may be selected to maintain accounts - Banks may be rotated periodically - Banks may be selected via - competitive bid