n NISM Certifications
VII NISM Series VII
Medium

During clearing and settlement, which process begins as soon as the client’s obligation is determined?

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

Options

  1. A

    Payment Process

  2. Settlement Process

    Correct answer

  3. C

    Matching Process

  4. D

    Clearing Process

Why this is the answer

Clearing determines obligations; settlement is the process of discharging them.

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NISM Series VII Mock Test 5