n NISM Certifications
X NISM Series X
Medium

What amount must a borrower deposit upfront when borrowing securities?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Extreme loss margin

  2. B

    Lending fee

  3. C

    Value-at-risk margin

  4. All of the above

    Correct answer

Why this is the answer

The borrower must deposit all these margins upfront, with daily MTM margins collected subsequently.

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