n NISM Certifications
VII NISM Series VII
Medium

A circuit breaker is triggered to:

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Reduce market volatility

    Correct answer

  2. B

    Allow traders to speculate

  3. C

    Increase liquidity

  4. D

    None of the above

Why this is the answer

Circuit breakers temporarily halt trading when market indices move excessively, preventing panic selling or buying.

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