n NISM Certifications
VII NISM Series VII
Medium

To facilitate Clearing and Settlement, every Clearing Member is expected to open an account with banks specified by the Clearing Corporation as ______.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Specified Banks

  2. B

    Corporate Banks

  3. Clearing Banks

    Correct answer

  4. D

    Exchange Banks

Why this is the answer

Clearing Banks act as intermediaries between clearing members and the Clearing Corporation. Members must maintain accounts to meet pay-in obligations.

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NISM Series VII Mock Test 5