n NISM Certifications
VII NISM Series VII
Medium

Which statements about Base Minimum Capital (BMC) are correct? (A) The highest BMC across segments applies for members registered on multiple segments. (B) BMC is maintained based on the member’s risk profile. (C) Trading members receive exposures against their BMC deposit.

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

Options

  1. Only A and B

    Correct answer

  2. B

    Only B and C

  3. C

    Only A and C

  4. D

    All A, B and C

Why this is the answer

BMC ensures contingency coverage for exchange members. Members registered on multiple segments must maintain the highest BMC among those segments, and BMC is based on their risk profile. No exposure is granted against BMC.

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