n NISM Certifications
VII NISM Series VII
Medium

While deciding on the fair quantum of the corpus of the Core Settlement Guarantee Fund, the Clearing Corporation should consider which of the following factors?A. Risk management system in force, B. Number of defaults by trading members, C. Net worth of the trading member

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

Options

  1. A and B

    Correct answer

  2. B

    A and C

  3. C

    B and C

  4. D

    None of the above

Why this is the answer

The Clearing Corporation considers the risk management system in force, current and projected clearing volumes, and default track records of members when deciding the appropriate corpus of the Settlement Guarantee Fund.

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