n NISM Certifications
VII NISM Series VII
Medium

A stock broker measures a client's risk profile based on a set of standards the broker adheres to. True or False?

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Brokers follow defined risk management standards to assess clients’ risk appetite, which helps in client profiling and risk monitoring.

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