Multiple choice general knowledge

An intermediary account is opened for the purpose of

  1. Settlement of trades.

  2. ALBM.

  3. Stock Lending and borrowing.

  4. Pledge and Hypothecation.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An intermediary account is used in stock lending and borrowing operations. These accounts facilitate the temporary transfer of securities between parties, with the intermediary acting as a facilitator. Settlement of trades, ALBM (Automated Lending and Borrowing Mechanism), and Pledge/Hypothecation are different functions.

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