n NISM Certifications
VII NISM Series VII
Medium

For any transaction executed on a stock exchange, the 'cash obligations' are settled through ______.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    RBI

  2. B

    Depository Participants

  3. C

    Exchanges

  4. Clearing Banks

    Correct answer

Why this is the answer

Clearing banks act as intermediaries between clearing members and the Clearing Corporation, facilitating pay-in and pay-out of funds.

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