Interest Rate Derivatives Quiz 6

Which aspect of project planning is most critical when aligning resource allocation with project deadlines?

Yield curve spread risk arises when the term structure shift is

The role of an Exchange is to _

What is the meaning of Market Risk ?

Which date is the ‘Expiry Date’ in Interest Rate futures contract ?

The Contract Amount (or the market lot ) for Treasury Bills and Government Bond futures is___and____Respectively.

Forward on Interest Rate is called_____

Who issues the ‘Certificates of Deposit ?

Assume two bonds are issued by an issuer which have same maturity but different coupon. Which bond should an investor buy ?

The Public Debt Office of RBI maintains demat account of Govt. Securities for _

Why will every futures seller prefer to deliver “cheapest-to-deliver” bond ?

Among the following options, which is true about Position Limits ?

A trader expects the 3 month interest rate to fall in one month. What should he do today ?

The situation of BUY IN arises due to failure in settlement by ____

What is the use of ‘Quantity Freeze’ ?

____are traded only in the OTC market.

The derivatives) traded in the exchange market is/are____

The contract months ie. expiry months for Treasury Bills futures in India are

_____is traded both in OTC and Exchange markets.

____is a debt security which has no cash flow until maturity.

When the difference between Long Term Rate and Short Term Rate falls or narrows from positive to less positive or from negative to more negative, the shift in term structure is called____

In India the Interest Rate Derivatives are regulated by

The members of Exchange are called___

If the seller fails to serve the Notice of Intent to Deliver by the stipulated time either for full Open Position or part of it, the failed quantity will be ___

For the Open Position on the Last Trading Day, the seller must notify the Clearing Corporation his intention to deliver by the close of____

A coupon paying bond is issued by a government ( sovereign ). Which risk(s) is/are associated with such bonds ?

The last trading day for a 10 year bond futures contract is____

An action which may result in either profit or loss in future is known as___

The settlement date for interest rate derivatives is___

Day Order’ is also known as___

The accrued interest is paid by_____in the secondary market trades of coupon bonds.

____is a measure of ‘Price Risk’ in a bond.

The position limits are defined___

Who frames the operational procedures for trading and settlement of interest rate derivatives ?

Among the below given options, interest rates will be highest for _credit ratings.

Which order has a better chance of execution – Stop Loss order or Stop Loss Limit order ?

Which of the following is true with respect to the regulations on buying and selling of T Bill and T Bond futures for Non-residents and Foreign Institutional Investors ?

A trader expects the interest rate change to happen in the short term, so he should use____

For the same deliverable bond, the conversion factor will be.____

When a Stop Loss buy order is entered, the trigger price has to be _

True return can be calculated in advance for___

The____order requires a trigger price to be specified.

_____measures the PRICE RISK in a bond.

If the SEBI regulations mention a farthest expiry date for futures contract of one year, than the Exchange can list the future trade contracts with the farthest expiry date of____

A ‘Gilt Account’ is____

Buy In’ applies for____

From the given options, which is the most liquid tenor in Money Markets ?

The maturity of the underlying bond on which the futures contract is currently listed is

Among the following options, which quantity of face value can be bought or sold for Govt. bond futures ?

In Exchange traded derivatives, the ‘trade guarantee’ is given by _

When we trade, we___

____is a part of Debt Market.

Prices of____are determined by the long term interest rates.

In a zero coupon bond the Macaulay Duration will be___

The ‘Quarterly’ month for the purpose of expiry of interest rate derivative is

You have bought a car by taking a vehicle loan at fixed interest rate. Which of the following is true in this case ?

If the shape of term structure is INVERTED, this means that_

Most consumer loans and housing loans are structured as

If the difference between Long term Rates and Short term Rates rises or widens (from positive to more positive or from negative to less negative), than the term structure of rates (shifts) is called

The price of derivatives is determined by the demand and supply factors – State True or False ?

The margins for outright future trades will be _Calendar spreads.

A trading member has two clients – Client A and Client B. Client A has a net long position of 12 and Client B has a net short position of 10. What is the net position for the trading member ?

When the term structure curve shifts in anti-clockwise direction, the shift is ___

There is a trade guarantee in which of the following trades ?

The seller can deliver___for the entire obligation.

The Public Debt Office is the depository for __

Interest rate risk is also known as

___a demat account for Govt. securities which is maintained with Public Debt Office of RBI by the Primary dealers for its own holdings.

Which is the risk you face if the prices of cash treasury bills and treasury bills futures are not the same ?

The maximum contract months available for Treasury Bill futures is _

To convert interest rate into interest amount, we need to know the _

In an Immediate or Cancel’ order _

What is the settlement method for bond derivatives ?

____are members of Clearing Corporation.

Which of these risks is most severe for Banks and Financial institutions ?

An action which does not result in any profit or loss in future is known as___

Yield curve spread risk arises when the term structure shift is

The role of an Exchange is to _

What is the meaning of Market Risk ?

Which date is the ‘Expiry Date’ in Interest Rate futures contract ?

The Contract Amount (or the market lot ) for Treasury Bills and Government Bond futures is___and____Respectively.

Forward on Interest Rate is called_____

Who issues the ‘Certificates of Deposit ?

Assume two bonds are issued by an issuer which have same maturity but different coupon. Which bond should an investor buy ?

The Public Debt Office of RBI maintains demat account of Govt. Securities for _

Why will every futures seller prefer to deliver “cheapest-to-deliver” bond ?

Among the following options, which is true about Position Limits ?

A trader expects the 3 month interest rate to fall in one month. What should he do today ?

The situation of BUY IN arises due to failure in settlement by ____

What is the use of ‘Quantity Freeze’ ?

____are traded only in the OTC market.

The derivatives) traded in the exchange market is/are____

The contract months ie. expiry months for Treasury Bills futures in India are

_____is traded both in OTC and Exchange markets.

____is a debt security which has no cash flow until maturity.

When the difference between Long Term Rate and Short Term Rate falls or narrows from positive to less positive or from negative to more negative, the shift in term structure is called____

In India the Interest Rate Derivatives are regulated by

The members of Exchange are called___

If the seller fails to serve the Notice of Intent to Deliver by the stipulated time either for full Open Position or part of it, the failed quantity will be ___

For the Open Position on the Last Trading Day, the seller must notify the Clearing Corporation his intention to deliver by the close of____

A coupon paying bond is issued by a government ( sovereign ). Which risk(s) is/are associated with such bonds ?

The last trading day for a 10 year bond futures contract is____

An action which may result in either profit or loss in future is known as___

The settlement date for interest rate derivatives is___

Day Order’ is also known as___

The accrued interest is paid by_____in the secondary market trades of coupon bonds.

____is a measure of ‘Price Risk’ in a bond.

The position limits are defined___

Who frames the operational procedures for trading and settlement of interest rate derivatives ?

Among the below given options, interest rates will be highest for _credit ratings.

Which order has a better chance of execution – Stop Loss order or Stop Loss Limit order ?

Which of the following is true with respect to the regulations on buying and selling of T Bill and T Bond futures for Non-residents and Foreign Institutional Investors ?

A trader expects the interest rate change to happen in the short term, so he should use____

For the same deliverable bond, the conversion factor will be.____

When a Stop Loss buy order is entered, the trigger price has to be _

True return can be calculated in advance for___

The____order requires a trigger price to be specified.

_____measures the PRICE RISK in a bond.

If the SEBI regulations mention a farthest expiry date for futures contract of one year, than the Exchange can list the future trade contracts with the farthest expiry date of____

A ‘Gilt Account’ is____

Buy In’ applies for____

From the given options, which is the most liquid tenor in Money Markets ?

The maturity of the underlying bond on which the futures contract is currently listed is

Among the following options, which quantity of face value can be bought or sold for Govt. bond futures ?

In Exchange traded derivatives, the ‘trade guarantee’ is given by _

When we trade, we___

____is a part of Debt Market.

Prices of____are determined by the long term interest rates.

In a zero coupon bond the Macaulay Duration will be___

The ‘Quarterly’ month for the purpose of expiry of interest rate derivative is

You have bought a car by taking a vehicle loan at fixed interest rate. Which of the following is true in this case ?

If the shape of term structure is INVERTED, this means that_

Most consumer loans and housing loans are structured as

If the difference between Long term Rates and Short term Rates rises or widens (from positive to more positive or from negative to less negative), than the term structure of rates (shifts) is called

The price of derivatives is determined by the demand and supply factors – State True or False ?

The margins for outright future trades will be _Calendar spreads.

A trading member has two clients – Client A and Client B. Client A has a net long position of 12 and Client B has a net short position of 10. What is the net position for the trading member ?

When the term structure curve shifts in anti-clockwise direction, the shift is ___

There is a trade guarantee in which of the following trades ?

The seller can deliver___for the entire obligation.

The Public Debt Office is the depository for __

Interest rate risk is also known as

___a demat account for Govt. securities which is maintained with Public Debt Office of RBI by the Primary dealers for its own holdings.

Which is the risk you face if the prices of cash treasury bills and treasury bills futures are not the same ?

The maximum contract months available for Treasury Bill futures is _

To convert interest rate into interest amount, we need to know the _

In an Immediate or Cancel’ order _

What is the settlement method for bond derivatives ?

____are members of Clearing Corporation.

Which of these risks is most severe for Banks and Financial institutions ?

An action which does not result in any profit or loss in future is known as___