n NISM Certifications
VII NISM Series VII
Medium

When is the Extreme Loss Margin collected/adjusted against the member’s total liquid assets?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    At the end of each day

  2. On a real-time basis

    Correct answer

  3. C

    Weekly

  4. D

    Monthly

Why this is the answer

Extreme Loss Margin, covering expected losses beyond VaR estimates, is collected or adjusted against total liquid assets in real time.

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