n NISM Certifications
VII NISM Series VII
Medium

Who has the authority to sign the authorization for a running account?

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Power of attorney holder of client

  2. B

    Authorized representative of the client

  3. C

    Family member of the client

  4. Only the client

    Correct answer

Why this is the answer

Authorization for a running account must be signed directly by the client; no one else can sign on their behalf.

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NISM Series VII Mock Test 5