n NISM Certifications
X NISM Series X
Medium

Which margin/money requirement is NOT needed upfront from a securities borrower?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Daily Mark-to-Market margins

    Correct answer

  2. B

    100% of lending price

  3. C

    Extreme loss margins

  4. D

    Value-at-risk margins

Why this is the answer

Daily MTM margins are collected periodically, not as an upfront deposit; initial margins include full upfront amounts like 100% of the lending price.

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