n NISM Certifications
NSM General NISM
Medium

Exchange traded Interest Rate Derivatives are always settled in ______.

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Cash

    Correct answer

  2. B

    Physical Delivery

  3. C

    May be physical or cash

  4. D

    None of the above

Why this is the answer

Interest Rate Derivatives traded on exchanges have compulsory cash settlement.

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