n NISM Certifications
VII NISM Series VII
Medium

‘Mark to market losses’ on outstanding settlement obligations of a member are known as _______.

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

Options

  1. A

    Outstanding Loss Margin

  2. Mark to Market Loss Margin

    Correct answer

  3. C

    Value at Risk Margin

  4. D

    Extreme Loss Margin

Why this is the answer

The clearing corporation collects three types of margins: VaR Margin (potential losses), MTM Loss Margin (actual losses on obligations), and Extreme Loss Margin (losses outside VaR calculations).

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NISM Series VII Mock Test 4