The correct answers are:

• Lending funds to operating divisions in the group.

• Hedging exposures to currency and interest rate risks for the group as a whole.

• Cash management for the group as a whole.

A central treasury department will usually manage the cash flows for the group as a whole, and will borrow centrally and re-lend the funds to operating units. It will also be responsible for the management of currency and interest rate risks for the group.

The management tasks of making investment decisions and preparing the master budgets will be carried out by the management of the operating units themselves (perhaps with the assistance of the central finance department and the finance director) or by the board of directors.