n NISM Certifications
VII NISM Series VII
Medium

Which product involves borrowing funds against collateral?

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Call Money

  2. Repo

    Correct answer

  3. C

    Notice Money

  4. D

    Term Money

Why this is the answer

A Repo (Repurchase Agreement) is a collateralized borrowing where securities are sold with an agreement to repurchase later at a higher price including interest.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.