Chapter 1: TREASURY MANAGEMENT

1. Central role in the finances of the modern corporation

2. monitors market conditions constantly.
3. Excellent measure for keeping track of the amount of debt that a company can
potentially borrow.
4. Handles bank’s investments in securities, foreign exchange, asset/liability
management and cash instruments.
5. Responsible for the company’s liquidity – ensures it has enough cash available at
all times to meet the needs of its primary business operations.
6. cash availability involving changes in the levels of CA and CL.
7. proper investment of excess funds. The primary goal is maximum return on
investment.
8. The interest rates that a firm pays on its debt obligations may vary directly with
market rates.
9. handling of receipts and disbursements of cash, compiling information from all
subsidiaries into short-range and long-range cash forecasts.
10. Includes a firm’s collections, disbursements, concentration, investment and
funding activities.
11. Manages cash flow and liquidity of funds within the bank.
12. ensures that sufficient cash is available for operational needs.
13. A good measurement for tracking investment performance. A firm’s investments
can include interest income or an increase in the MV of securities held.

14-17. Bank relations

18. Management of an enterprise’s holdings, with the ultimate goal of managing the
firm’s liquidity and mitigating its operational, financial and reputational risks

Chapter 2

1. A document that orders a bank to pay a specific amount of money from a person
or company’s account to the person or firm in whose name the check has been
issued.
2. A payment on behalf of the payer, which is guaranteed by the bank. (ex. MC’s)
3. Debits immediately the amount from the payer’s account, therefore no risk.
4. the time from when the supplier receives the check and deposits it.
5. *internal bank factors are also applied
6. When a company has written a large volume of checks that have not yet cleared,
the available cash balance shown in the company’s bank will be larger than the
company’s ledger balance.
7. on which an account holder can use the funds from deposited checks that have
passed through the bank clearing.
8. a delay while the payment is delivered through the postal service
9. time between when the check is deposited and when it is charged to the payer’s
account
10. Uses a special scanner and scanning software to create an electronic image of
each check, which then transmits to the bank
11. An international bank code that identifies particular banks worldwide.
12. Electronic network for the processing of both credit and debit transactions.
 13. A letter from a bank guaranteeing that a buyer's payment to a seller will be
received on time and for the correct amount.
14. Sends funds to the recipient’s bank account more rapidly than any other form of
payment.
15. Standard form of international payment
16. Standard international numbering system developed to identify an overseas
bank account
17. Use to send money to overseas banks
18. Consists of 8 or 11 characters
19. Wherein a company can have its bank receive and process checks on its behalf
20. By law, checks are valid for 6 months or 180 days from the date of issue.
21. Receiving funds immediately even though checks are from other banks
22. the time between when the check is deposited and when it is available to the
recipient.
23. Issued directly by a bank
24. Made on a paper document which has traditionally been physically routed from
the payer to the payee, to the payee’s bank, and then back to the payer’s bank.
25. some checks are valid for 1 year, depending on the purpose and is noted on the
face of the check.
26. Allows a company to avoid physical movement of received checks to its bank
27. Allows a payee to initiate a debit of the payer’s bank account, with the funds
shifting into the payee’s bank account.
28. Done with the written approval of the payer.

29-35. Check Security Features

36. important information for wire transfer

Chapter 3:

1. wherein goods are purchased and stored in large quantities and sold, in batches,
to resellers or groups, but not to final consumers.
2. purchase of foreign manufactured goods in the buyer’s domestic market.
3. A comprehensive scorecard of the country’s economic health.
4. Exists when two or more countries agree on terms that helps them trade with
each other.
5. implemented to raise the cost of products to consumers in order to make them
as expensive or more expensive than local goods or services
6. an entire ban of trade and/or commercial activity concerning a specified good or
service.
7. restrictions that limit the quantity or monetary value of specific goods or
services that can be imported over a certain period of time.
8. barriers that restrict trade through measures other than the direct imposition of
tariffs.
9. designed to impose additional costs or limits on imports and/or exports in order
to protect local industries. 
10. (zero tariff) trade between countries/states.
11. is a trading bloc that gives preferential access to certain products from the
participating countries.
 12. rules of trade are set between several countries.
13. – rules of trade between two countries.
14. A wide-ranging taxes, tariff and trade treaty that often includes investment
guarantees.
15. Value of all finished goods and services produced in a country in one year by its
nationals.
16. Represents a significant share of GDP.
17. if goods are imported from one country with the purpose of re-exporting to
another.
18. Simply the exchange of goods and services between parties.
19. taxes that are imposed by the government on imported goods or services.

20-29. benefits of International trade

Chapter 4:

1. also called forex reserves or FX reserves

2. represent a claim to currency held by IMF member countries for which they may
be exchanged.
3. the gold held by a national central bank, intended mainly as a guarantee to
redeem promises to pay depositors, note holders, or trading peers, during the
eras of the gold standard, and also as a store of value, or to support the value of
the national currency.
4. Importance of gold reserve
5. BIR Revenue Regulation No.___________________________________________
6. an interest-bearing international reserve asset created by the IMF in 1969 to
supplement other reserve assets of member countries.
7. cash and other reserve assets held by a central bank or other monetary
authority that are primarily available to balance payments of the country,
influence the foreign exchange rate of its currency, and to maintain confidence
in financial markets.
8. A transfer of money, often by a foreign worker to an individual in their home
country.
9. It can be sent via a wire transfer, electronic payment system, mail, draft, or
check.

Chapter 5:

1. One liability to another

2. “When liabilities increase, it is a_____________; When assets increase, it is an
___________________”.
3. refers to change or transfer.
4. Increase in the current year current assets than previous year
5. Decrease in the current year current assets than previous year
6. Increase in the current year current liabilities than previous year
7. Decrease in the current year current liabilities than previous year
8.13.Adjustments effects

14- 18. Limitations of Fund Flow Statement

19-25. significance of fund flow statement

 26. one important management tool for decision making.

27. Is prepared taken into account revenue statement and position statement of the
firm.

29. A comparative analytical statement between two consecutive years.

30. Reveals the funds inflow and outflow during an accounting period.

31. Net worth, i.e. owner’s equity capital plus reserves

32. It portrays the sources from which funds are obtained and the uses to which
they are being put.

33. Assets to liabilities or vice versa

34. prepared on the basis of information contained in the consecutive two years
Balance Sheet and that is based on the Profit and Loss Account for the
period concerned.

Chapter 6:

1. the liquid asset held in cash or deposit by a federal reserve system member
bank.
2. protect banks against runs by depositors
3. absorb losses on loans and other investments
4. Banks with $15.2 million to $110.2 million, How much money do banks need to
keep in reserve?
5. more than $110.2 million in transaction accounts, How much money do banks
need to keep in reserve?
6. Bank deposits includes.
7. borrowed by the bank in the form of deposits.

8-10. pillars of central banking

11. Rather than spending money, an individual can decide to store wealth in the
form of money.

12. It minimizes the excess reserve as a crucial role for a money position manager.
This is because every dollar in legal reserve earns a low rate of return since they are
invested in government which yield low rates.

13. Money determines the value of a commodity when exchanging goods and
services.

14-15. two types of bank reserves

16. amount of funds that a bank holds in reserve to ensure that it is able to meet
liabilities in case of sudden withdrawals.

17. cash minimums that must be kept on hand by financial institutions in order to
meet central bank requirements.

18. known as retained earnings – are portions of a business's profits which have
been set aside to strengthen the business's financial position.
Chapter 6:

1. tax paid by you on your income directly to the government.

2. - taxes on imported goods imposed in the aim of strengthening internal
businesses.
3. a position that an entity takes in a previously filed tax return or which it expects
to take in a future tax return.
4. the management of finances for the purpose of paying tax.
5. Signifies a level of performance that describes a process that uses the lowest
amount of input to create the greatest amount of outputs
6. by which governments finance their expenditure by imposing charges on citizens
and corporate entities.
7. Main purpose is to accumulate funds for the functioning of the government
machineries.
8. to promote economic growth with stability.

9-12. Benefits of Tax Planning

14. tax levied on certain goods and services.

15. rate applied to the fair market value of property in a person's estate at the time
of death
16. a percentage of corporate profits taken as tax by the government to fund
federal programs.
17. mandatory financial charge or some other type of levy imposed upon a taxpayer
by a governmental organization in order to fund various public expenditures.
18.