n NISM Certifications
NSM General NISM
Medium

Which of the following is an interest rate derivative?

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

Options

  1. A

    Interest rate swaps

  2. B

    Interest rate futures

  3. C

    Forward rate agreement

  4. All of the above

    Correct answer

Why this is the answer

All these instruments are interest rate derivatives used for hedging or speculation.

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