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      Question

      What is the 'Front Office' primarily responsible for in

      a Bank’s Treasury?
      A Settlement of trades and physical movement of cash. Correct Answer Incorrect Answer
      B Monitoring compliance with RBI regulations and internal limits. Correct Answer Incorrect Answer
      C Proprietary trading and executing transactions in the forex and money markets. Correct Answer Incorrect Answer
      D Performing financial audits of the bank's branches. Correct Answer Incorrect Answer
      E Managing the payroll for the corporate banking division. Correct Answer Incorrect Answer

      Solution

      The Treasury Front Office is the "trading floor" where dealers manage liquidity and execute trades in foreign exchange, debt, and derivatives. Settlements (Back Office) and Risk/Compliance (Middle Office) are kept separate for internal control.

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