Module 3 of 4 in Macroeconomics and financial markets
Bonds, currencies, flows and commodities
Bond prices and yields, the yield curve, the rupee, foreign investment flows, and crude oil and other commodity prices.
5 lessons in this module. Progress is saved in your browser as you go.
Indian markets are connected to the rest of the world through bond yields, the exchange rate, foreign investors and commodity prices. This module explains each link and the industries most exposed to it.
By the end of this module you should be able to
- Explain why bond prices and yields move in opposite directions and what the yield curve shows.
- Explain what moves the rupee and how exchange rates affect importers and exporters.
- Describe foreign portfolio and direct investment flows and their effect on markets.
- Explain how crude oil and other commodity prices affect inflation and different industries.
Lessons in order
Module test
10 questions, chosen at random from a bank of 31 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- Interest rates: Bond yields are market interest rates, introduced there.
- Compounding and CAGR: Pricing a bond discounts each future payment using compounding.
- Measuring inflation in India: Differences in inflation affect currencies over long periods.