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Professional Development Month 2022: Week 1 quiz

Professional Development Month 2022
Cash management week quiz

July 2022
1. SCR Regulation change – Fraud prevention

From 14 March 2022 a new SCA regulation changed the way that customers confirm their identity when making purchases online. They now have to go through an extra layer of authentication to prove who they are directly to their card-issuing bank – rather than the place they are shopping with. 

Which of the following must be confirmed when making a purchase?

1) Something they are (fingerprint or facial recognition);
2) Something they have (a mobile phone or tablet);
3) Something they know (a pin or a password).
 
2. Investment policy

Common objectives include:
  • Principal preservation;
  • Sufficient liquidity/meeting forecasted cash-flow requirements;
  • Provide yield/income;
  • Provide tax-advantaged returns; and
  • Seeking above-benchmark returns.

What other key considerations should be included?

1) Alignment with Corporate strategy (including the Company’s ESG policy)
2) Real time MTM within the TMS
3) Scope of policy – global, regional, business unit level or just Treasury
4) Dealing authority levels Including Limits
 
3. Ultra Short Duration Funds

USFs are open-ended bond funds that occupy the investment space between MMFs and Short Duration Fixed Income Bond Funds.

What are the main characteristics of these funds?

1) A mix of longer-dated securities and lower-quality investment-grade investments
2) Investment exposure to BBB- securities typically capped to 75%
3) Enhanced returns
4) Maximum maturity = 3 years
5) Broader range of investments (sector wise)
4. Cash Conversion cycle

The formula for the cash conversion cycle (Cash outflows into cash inflows or amount of liquidity measured in days) is:
5. Cyber-Security

Which is the closest description for Cyber Security - APT (Advanced Persistent Threat) Attacks:
6. If you would like to be entered into the prize draw please provide your name and email address below:
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