n NISM Certifications
VII NISM Series VII
Medium

The ____________ Bank is the intermediary between a clearing member and the clearing corporation.

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

Options

  1. A

    Nationalised

  2. Clearing

    Correct answer

  3. C

    Central

  4. D

    Scheduled

Why this is the answer

Clearing Banks act as intermediaries between clearing members and the clearing corporation. Every clearing member must maintain an account with an empanelled clearing bank branch to facilitate settlement of funds.

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