n NISM Certifications
NSM General NISM
Medium

For long-term interest rate speculation or hedging with a long-term outlook, which instrument should be used?

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Treasury Bills futures

  2. 10-year Government Bond futures

    Correct answer

  3. C

    Both of these

  4. D

    None of these

Why this is the answer

Long-term bond futures are suitable for long-term interest rate strategies.

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