Finastra Assessment Treasury and Capital Markets Questions and Answers

Question 1

A corporate treasury department is seeking to implement a new Treasury Management System (TMS). Which of the following is a primary benefit they can expect from this implementation?

Accepted Answer

Enhanced visibility into global cash positions and automated financial risk reporting.

Answer

Increased manual control over individual payment approvals.

Answer

Decentralization of financial data across multiple spreadsheets.

Answer

Longer, more complex workflows for trade settlement and reconciliation.

Question 2

In a repurchase agreement (repo), what is the primary role of the securities involved in the transaction?

Accepted Answer

To act as collateral for what is effectively a short-term, secured loan.

Answer

To serve as a speculative investment for the cash provider.

Answer

To be retired from the market to reduce overall supply.

Answer

To transfer ownership of the underlying company to the lender permanently.

Question 3

A bank utilizes Finastra's Fusion Kondor for its treasury operations. Which of the following activities is a core function supported by this solution?

Accepted Answer

Executing and managing foreign exchange (FX) and derivatives trades from front to back office.

Answer

Processing retail mortgage applications.

Answer

Managing the bank's human resources and payroll.

Answer

Onboarding new commercial lending clients.

Question 4

What is the primary function of a Central Counterparty (CCP) in capital markets?

Accepted Answer

To mitigate counterparty credit risk by becoming the buyer to every seller and the seller to every buyer.

Answer

To provide investment advice and portfolio management services to traders.

Answer

To act as a direct lender for corporate bond issuances.

Answer

To set the daily price limits for stocks on a national exchange.

Question 5

A regional bank wants to streamline its core treasury operations, covering everything from deal inception to settlement and accounting for instruments like FX, loans, and deposits. Which Finastra solution is specifically designed as a front-to-back office system to achieve this?

Accepted Answer

Fusion Opics

Answer

Fusion Global PAYplus

Answer

Fusion Essence

Answer

Fusion Fabric.cloud

Question 6

Which of the following best describes the role of a Central Securities Depository (CSD) in the post-trade environment?

Accepted Answer

Providing safekeeping and settlement of securities through electronic book-entry.

Answer

Executing trades on behalf of institutional investors.

Answer

Regulating the issuance of all new corporate and government debt.

Answer

Analyzing market trends to predict future securities prices.

A corporate treasury department is seeking to implement a new Treasury Management System (TMS).Which of the following is a primary benefit they can expect from this implementation?

A corporate treasury department is seeking to implement a new Treasury Management System (TMS).
Which of the following is a primary benefit they can expect from this implementation?