1 REVIEWER IN TREASURY MANAGEMENT

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1 REVIEWER IN TREASURY MANAGEMENT

問題数 59 • 2025/01/30

Shiela Caber

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A cheque issued by the bank, payable to a payee as indicated by the person who buys the MC. It is often used in situations when the beneficiary does not accept cash or personal cheques.

Managers Cheque

a check that is presented to be cashed or deposited at a bank six months or more after the date it was written. The date when the check is presented to be cashed or deposited in a bank account is known as the payment date.

Stale cheque

When the date mentioned on the cheque is yet to come. These types of cheques are issued on mutual agreement of payer and payee. However, these types of cheques cannot be paid before the date written on the cheque. It can only be paid on or after (up to three months) the date mentioned on the cheque. It is suggested to check the date written on the cheque before ccepting it from the payer. It is used very commonly in businesses as ________ can be taken as collateral.

Post-Dated Cheque

A medium of exchange that can be used in place of hard currency. It is a cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder's signature

Travellers cheque

A financial account that is owned and used by a business or corporation. Checking or other types of demand deposit accounts are considered commercial accounts. The Federal Reserve instituted Regulation Q which prohibits banks from paying interest on this type of account.

Commercial cheque

Is one which is payable to a particular person. The payee can transfer an order cheque to someone else by signing his or her name on the back of it

Order cheque

Can be transferred by mere delivery; they need no endorsement. In simple words a cheque which is payable to any person who Presents it for payment at the bank counter

bearer cheque

Is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This symbol means that the check can only be deposited directly into a bank account and cannot be Immediately cashed by a bank or any other credit institution

Crossed cheque

A cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque

Uncrossed or open cheque

When an earlier date is mentioned on the cheque than the date it is brought to the bank. These types of cheques remain valid for the duration of 3 months, after three months these types of cheques become invalid and cannot be encashed. Therefore, it is important to write the correct date on the cheque and encashed it before the duration of three months

Anti-Dated Cheque

If it is torn into two or more pieces. Such a cheque, if it presented for payment, will not be paid by the banker unless the mutilation is confirmed by the drawer of the cheque

Mutilated cheque

A bank is the issuer of these types of cheques. The bank issues these cheques on behalf of an account holder to make a remittance to another person in the same city. Here the specified amount is debited from the bank account of the customer, and then, the cheque is issued by the bank. This is the reason banker's cheques are called Non-negotiable instruments as there is no room for banks to dishonour these cheques. They are valid for three months. They can be revalidated provided specific conditions are met

Bankers Cheque

Established 1851, it was the first state bank.

Banco Espanol - Filipinas de Isabel II

It was renamed Bank of the Philippine Island in _____

1912

The first paper money circulated in the Philippines, were Issued in 1852 by El Banco Español Filipino de Isabel II, the first bank established in the country. The banknote, "strong peso" in English, had denominations 5, 10, 25, 50 and 100.

Pesos fuertes

The American authorities issued silver certificates, series dated 1903 to 1918, then later replaced these with treasury Certificates.

Silver Certificate

these Victory Notes were overprinted with the Central Bank of the Philippines, to announce its establishment in _____

1949

El Banco Español Filipino De Isabel A. renamed _________

Bank of the Philippine Islands

were authorized to issue banknotes during the American era, from 1908 to 1933 for the former and 1916 to 1937 for the latter, republic Act No. 211 dated 1 June 19-48 ordered the withdrawal of PNB notes from circulation

BPI & PNB Notes

Between 1541 and 1945, the Forces printed millions of paper bills of several denominations to replace US-Philippine currency.

Japanese Occupation/ war notes

During the worst inflation in Philippine history, Filipinos would go to the market laden with _________ since one duck egg cost 75 pesos, and a box of matches more than 100 pesos

bayongs (native woven bags) of "Mickey Mouse bills,

The Notes, as fiat money, had no back up reserves, thus, Filipinos dubbed it __________ money since it was next to worthless.

Mickey Mouse

issued by different provinces and, in some instances, municipalities through their local currency boards to show resistance against the Japanese occupation.

Guerrilla Notes or Resistance Currencies

The new 500 PHP notes were launched in _____ , the first 1,000 PHP notes were released in ______ , and 200 PHP notes were released in _____.

1987, 1991 , 2002

involves the process of managing the cash,investments and other financial assets of the business. The goal of these activities is to optimize current and medium-term liquidity and make solid financial decisions involving invested and investable assets.

Treasury Management

The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable

A corporation or trust that invests the pooled capital of investors in financial securities.

Investment Company

refers to an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

Accounts Payable

Treasury departments are responsible for identifying, assessing, and mitigating financial risks, such as interest rate risk, currency risk, and credit risk. This includes implementing hedging strategies, establishing credit limits, and monitoring market conditions.

Risk Management

The danger that the value of a bond or other fixed-income investment will suffer due to a change in interest rates

Interest Rate Risk

The losses an international financial transaction may incur due to currency fluctuations.

Foreign Exchange Risk

The possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations

Credit Risk

Treasury departments are responsible for managing the organization's debt, including issuing new debt, refinancing existing debt, and managing debt covenants. This involves negotiating favorable terms, minimizing borrowing costs, and ensuring compliance with debt agreements

Debt Management

A tailored strategy to help repay outstanding debt and financial obligations without using a new loan

Debt Management Plan

Treasury teams are responsible for preparing financial reports, including cash flow statements, balance sheets, and income statements. This information is critical for internal decision-making and external reporting requirements.

Financial reporting

This involves managing the organization's current assets and liabilities, including cash, accounts receivable, and inventory.

Working Capital Management

This involves planning and managing the organization's capital expenditures, such as investments in new equipment or facilities.

Capital Budgeting

This involves developing financial forecasts, setting financial targets, and monitoring financial performance

Financial Planning

Treasury departments are responsible for ensuring compliance with all relevant financial regulations, including tax laws, accounting standards, and securities regulations

Regulatory Compliance

Treasury management plays a critical role in developing and implementing the organization's overall financial strategy.

Strategic planning

Treasury teams manage the organization's investments, including short-term and long-term investments, to maximize returns while maintaining appropriate risk levels. This involves selecting investment instruments, monitoring performance, and managing portfolio diversification.

Investment Management

Some common examples of short-term investments include:

CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills.

Financial investments that can easily be converted to cash.

Short-Term Investments

An account on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate. and cash.

Long-Term Investments

Property consisting of land and any permanent structures or improvements on the land, whether natural or man-made.

Real Estate

also known as equity, is a security that represents the ownership of a fraction of the issuing corporation.

Stock

that pools money from shareholders to invest in securities.

Mutual funds

A fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

Bond

is a type of pooled investment security that holds multiple underlying assets, rather than only one.

An exchange-traded fund (ETF)

The treasury department of a bank is responsible for balancing and managing the daily cash flow and liquidity of funds within the bank. The department also handles the bank's investments in securities, foreign exchange and cash instruments

The treasury Department

The key goal of treasury management is _____ , ______ and ______ to satisfy the financial objectives of the organization

planning, organizing and controlling cash assets

The Treasurer’s functions can in principle be classified as follows:

Core functions Marginal functions

(functions which can be found in every company)

Core function

(activities which are extremely company-specific and/or only form part of the treasury in selected cases), as well as

Marginal Function

is a principal determinant in the entity’s financial strategy and financial policy enabling the entity to determine what businesses to invest in organising the appropriate funding for the varying business segments, and controlling the risk in the organisation.

Treasury Management in a financial entity

Treasury Management - Function Financial Risk Management • • • • • Cash Management • • • • • • Funding Management • • • • •

Financial Risk Management • Financial & Market Risks • Currency Risk and foreign exchange risk • Commodity Price Risk • Interest Rate Risk • Regulatory Compliance Cash Management • Collections • Disbursements • Cash Flows • Central Cash Pooling • Minimizing float & working capital • Cash Budget Management Funding Management • Loans Management • Investment Management • Managing Risk Return Profile • Tax efficiency of investments • Trading activities and deals

Director of Finance and Administration Financial Operations - - - - Treasury - - - - - - Financial Planning - - - City Clerk - - - -

Financial Operations - Accounts Payable - Purchasing - Payroll - Financial Reporting Treasury - Utility Billing - Accounts Receivable & Receipting - Debt Admin - Licensing - Tax Collections - Cemetery Admin. Financial Planning - City Budget - Capital Improvement Program - Strategic Planning City Clerk - Records Management - Public Disclosure Requests - Council Meeting Agendas & Minutes - Mail Services

Types of check

Managers check stale check crossed check bearers check post dated check mutilated check travellers check banker's check self check order check commercial check open check

Treasure Management Activities

Cash management Risk Management debt Management financial reporting