[amp_mcq option1=”91 days, T-bills” option2=”10 years, National Government of India Security” option3=”Both A and B” option4=”None of the above” correct=”option3″]
The correct answer is C. Both A and B.
Interest rate futures are financial instruments that allow traders to bet on the future direction of interest rates. They are traded on an exchange, and the price of a futures contract is based on the expected future interest rate.
In India, interest rate futures are available on 91-day T-bills and 10-year National Government of India Securities. T-bills are short-term government bonds, while National Government of India Securities are long-term government bonds.
Traders can use interest rate futures to hedge against interest rate risk, or to speculate on the future direction of interest rates.
Here is a brief explanation of each option:
- Option A: 91 days, T-bills. T-bills are short-term government bonds that are issued by the Reserve Bank of India. They have a maturity of 91 days, and they are considered to be one of the safest investments in India.
- Option B: 10 years, National Government of India Security. National Government of India Securities are long-term government bonds that are issued by the Government of India. They have a maturity of 10 years, and they are considered to be one of the safest investments in India.
- Option C: Both A and B. Interest rate futures are available on both 91-day T-bills and 10-year National Government of India Securities.
- Option D: None of the above. Interest rate futures are not available on any other type of security in India.