n NISM Certifications
VII NISM Series VII
Medium

While computing settlement obligations, the clearing corporation uses a predefined methodology specified for each segment/product. State True or False.

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

The Clearing Corporation applies a predefined methodology (e.g., netting, trade-to-trade, MTM) for each market segment to determine settlement obligations accurately.

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