n NISM Certifications
VII NISM Series VII
Medium

Which statement is TRUE regarding Determination of Obligation? A. The settlement obligation methodology is the same for all products and segments, B. Settlement obligations are based on a predefined methodology.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A

  2. Only B

    Correct answer

  3. C

    Both A and B

  4. D

    Neither A nor B

Why this is the answer

Settlement obligations are calculated using predefined methodologies specific to each segment/product. They are not uniform across all products and segments.

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