n NISM Certifications
VII NISM Series VII
Medium

Self-Auction is a mechanism to fulfill ________.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Shortage of funds of a broker

  2. B

    Arbitrage opportunities

  3. Internal delivery shortages of a broker

    Correct answer

  4. D

    All of the above

Why this is the answer

Self-Auction is used to resolve internal shortages when one client of a broker fails to deliver shares while another client has bought the same quantity.

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