n NISM Certifications
VII NISM Series VII
Medium

The Clearing Corporation carries out the clearing process called ______ netting.

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

Options

  1. A

    Open

  2. B

    Unilateral

  3. Multilateral

    Correct answer

  4. D

    Gross

Why this is the answer

The clearing process uses multilateral netting to determine net settlement obligations (delivery/receipt positions) for clearing members, ensuring an efficient settlement of funds and securities.

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