n NISM Certifications
VII NISM Series VII
Medium

Every clearing member must maintain an account with a clearing bank for clearing and settlement purposes. State True or False.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Clearing banks serve as intermediaries between clearing members and clearing corporations. Each clearing member must maintain a dedicated account with a clearing bank to settle fund obligations.

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NISM Series VII Mock Test 2