FIN3703 Assignment 1 Semester 2 2026 – Due 31 August 2026

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FIN3703 ASSIGNMENT 1 2026
DUE 31 AUGUST 2026
SECTION A
QUESTION 1 Treasury management is executed in any business, irrespective of
its size, structure, or industry. Which of the following activities does not fall
directly under the corporate treasury management functions in business?
a. The management of the cost of capital, capital structure and dividend pay-out.
b The management of financial, operational, and strategic risks.
c. The management of cash, liquidity, and banking relations.
d. Management of cash forecasting, cash surpluses and cash deficits. Circle the correct
option below: 1. a and b 2. a and c 3. b and c 4. a and d

(b and c)

The corporate treasury function is primarily concerned with the management of cash,
liquidity, banking relations, and cash forecasting (LU 1, Section 1.6.2). The
management of the cost of capital and capital structure is a strategic financial
management function, typically performed by the CFO, while managing operational and
strategic risks, though related, is often the domain of the broader risk management
function, not solely a treasury activity. Therefore, options b and c are not directly part of
the core treasury functions.

SECTION A

(26 MARKS)
QUESTION 1

(2)
Treasury management is executed in any business, irrespective of its size, structure,
or industry. Which of the following activities does not fall directly under the corporate
treasury management functions in business?
a. The management of cash, liquidity, and banking relations.
b. The management of the cost of capital, capital structure and dividend pay-out.
c. The management of financial, operational, and strategic risks.
d. Management of cash forecasting, cash surpluses and cash deficits.

Circle the correct option below:
1. a and b
2. a and c
3. b and c
4. a and d

NOTE: Circle one option only. Students who will circle more than one option
will not be allocated marks.

QUESTION 2

(2)
Which of the following statements below are correct about the interest rate swaps?
An interest rate swaps involves counterparties who want to exchange …
a. a floating rate commitment for a fixed rate.
b. long-term debt for equity.
c. short-term debt for long-term debt.
d. fixed assets with current assets

Circle the correct option below:
1. a
2. a and c
3. a and b
4. b and d