Treasury products
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a treasury product in the context of bank financial management?
Treasury products are financial instruments and contracts used by bank treasuries to manage liquidity, interest rate risk, currency risk, and to generate income through trading and investment activities.
What is a treasury bill and what is its typical maturity period in India?
Short-term government security with 91, 182, or 364-day maturity.
What is a Certificate of Deposit (CD) and how is it used as a treasury product?
A Certificate of Deposit is a short-term, negotiable money market instrument issued by banks to raise funds from the market, typically with maturities ranging from 7 days to 1 year, and can be traded in the secondary market.
What is the primary purpose of a bank's treasury department?
To manage liquidity, investments, and foreign exchange risk.
What is a Commercial Paper (CP) and who can issue it?
Commercial Paper is an unsecured, short-term debt instrument issued by corporates, primary dealers, and all-India financial institutions to raise funds for working capital needs, with a maturity of 7 days to 1 year.
What is the 'Held for Trading' (HFT) classification for investment securities?
Securities held for short-term profit from price movements.
What is the minimum denomination for issuing Commercial Paper in India?
The minimum denomination for issuing Commercial Paper in India is Rs. 5 lakh, and it must be issued in multiples of Rs. 5 lakh thereafter, as per RBI guidelines.
What is a banker's acceptance and how is it used in trade finance?
A bank-guaranteed time draft used to finance international trade.
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