n NISM Certifications
VII NISM Series VII
Medium

The initial and exposure margin is payable _________ by clearing members.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    When information is received from clearing house to make payments

  2. B

    At the time of trade

  3. C

    At the end of the day the trade took place

  4. Upfront

    Correct answer

Why this is the answer

Initial and exposure margins must be paid upfront in cash, bank guarantees, FDRs, or approved securities.

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NISM Series VII Mock Test 6