NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Interest Rate Concept: Interest rate is the charge for borrowing assets, expressed as a percentage of the principal.
  • Debt vs. Loan: Debt securities are tradable, unlike loans, allowing risk transfer through pricing.
  • Factors Influencing Interest Rates: Demand and supply of money, fiscal deficit, inflation, global interest rates, and central bank policies.
  • Nominal vs. Real Interest Rate: Nominal rate is the stated rate; real rate adjusts for inflation.
  • Effective Interest Rate: Accounts for compounding, differing from the nominal rate.

NISM Interest Rate Derivatives

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