Unit ko samjho · NISM Series V-D
Interest Rate Derivatives
2 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- Which arrangement best describes a plain-vanilla interest-rate swap in a single currency?
- Treasury compares a privately negotiated, uncleared forward-rate agreement with an exchange-traded interest-rate futures contract. Which statement correctly describes a usual distinction? Assumptions: The OTC agreement in this comparison is explicitly bilateral and uncleared.
Zaroori ideas
Practice bank se · 1
Which arrangement best describes a plain-vanilla interest-rate swap in a single currency?
In a plain-vanilla single-currency interest-rate swap, one interest leg is fixed and the other floating, both calculated using an agreed notional principal. The notional ordinarily serves as the calculation base rather than being exchanged as a loan principal. Remember: Identify a derivative by its cash-flow obligations, not merely by the word interest.
Hint Focus on exchanging types of interest payment rather than purchasing an asset.
V-D-127Practice bank se · 2
Treasury compares a privately negotiated, uncleared forward-rate agreement with an exchange-traded interest-rate futures contract. Which statement correctly describes a usual distinction? Assumptions: The OTC agreement in this comparison is explicitly bilateral and uncleared.
OTC agreements can be customised, whereas exchange products use specified standard terms and clearing arrangements. Neither feature means that all risks disappear. The risk types and controls differ. Remember: Customisation, counterparty arrangements and market risk are separate features.
Hint Separate contract customisation from risk management through clearing.
V-D-128