8) The company offering a discount on accounts payable is trying to firm that pays on time rather than take a discount is attempting to A) Speed up cash outflow; slow down cash inflow B) Speed up cash inflow; slow down cash inflow C) Speed up cash inflow; slow down cash outflow D) Speed up cash outflow; slow down cash outflow Which of the following is NOT a common role of the treasury middle office? A. To provide information to management and implement risk management systems B. Monitors exposure limits and stop-loss limits C. Implements transfer pricing mechanism D. In smaller institutions also functions as IT support unit 9) A spot transaction in the foreign exchange market involves the A) exchange of exports and imports at a specified future date. B) exchange of bank deposits at a specified future date. C) immediate (within two days) exchange of exports and imports. D) immediate (within two days) exchange of bank deposits, 10)

**Question 8 – Part 1** A supplier may offer a discount on its accounts payable to encourage prompt payment by its customers. Receiving the payment early increases the supplier’s liquidity, meaning that cash comes in sooner (sped‐up cash inflow). At the same time, shortening the collection period delays the need to extend credit further, which can be seen as effectively “slowing down” the outflow of funds needed for financing the operations. In other words, the supplier is trying to obtain cash faster while avoiding unnecessary delays in the cash cycle. This corresponds to: \[ \textbf{C) Speed up cash inflow; slow down cash outflow.} \] **Question 8 – Part 2** The treasury middle office is typically responsible for functions such as: - Providing management with risk information and implementing risk management systems. - Monitoring exposure limits and stop-loss limits. - Assisting in implementing some internal pricing and control frameworks (such as transfer pricing in large organizations). However, in many institutions, particularly larger ones, tasks like IT support are handled by dedicated IT departments rather than by the treasury middle office. In smaller institutions, while roles sometimes overlap, the function of IT support is not commonly a designated role of the treasury middle office. Therefore, the function that is NOT a common role of the treasury middle office is: \[ \textbf{D) In smaller institutions also functions as IT support unit.} \] **Question 9** A spot transaction in the foreign exchange (FX) market is defined as a transaction in which currencies are exchanged almost immediately. In practice, this “immediate” settlement typically occurs within two business days. Here the exchange involves actual bank deposits—meaning the underlying funds in the respective currency accounts are exchanged. Thus, the correct answer is: \[ \textbf{D) immediate (within two days) exchange of bank deposits.} \]