faas

Which one is not a type of Hedge Accounting?

• Net investment hedges

• Cash flow hedges

• Interest Rate Hedges

• Fair Value Hedges

Which one is not a yield curve?

• OIS Curves

• CCS Curves

• TRS Curves

• Zero Curves

If the discount factor increase PV of the cash flows _______?

• Increases

• Decreases

• Remains the same

Which one of these two options refer the same thing?

• Buy Call - Sell Call

• Sell Put - Buy Call

• Buy Put – Sell Put

Which of these options are more reasonable choice when the interest rate are expected to rise in the long-term?

• Receiving fixed interest, Paying LIBOR

• Receiving LIBOR, Paying fixed interest

• Receiving fixed, Paying fixed

Which one is not a derivative instrument?

• Forward contracts

• Swap contracts

• Shares

• Options contract

What is the most important advantage of using financial derivatives?

• Guaranteed investment returns

• Tax advantages

• Speculative gains

• Risk management

Which of the following contract allows two parties to exchange cash flows based on different interest rates?

• Currency swap

• Interest Rate Swap

• Commodity swap

• Equity swap

The interest rate risk increases when _______ increases.

• Notional amount

• Days to maturity

• Market stability

What happens if the discount factor would be risen?

• PV would increase

• PV would decrease