n NISM Certifications
VII NISM Series VII
Medium

Identify the correct statements regarding clearing and settlement: A. Depositories carry out clearing, B. Clearing Corporations carry out settlement, C. Custodians can act as clearing members

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

Options

  1. A

    Only A and B are correct

  2. Only B and C are correct

    Correct answer

  3. C

    Only A and C are correct

  4. D

    All A, B and C are correct

Why this is the answer

Clearing is done by clearing corporations; custodians can be clearing members. Depositories do not perform clearing.

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