๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!
  • google app store apple app store
    • โœ–

      Question

      I n the Indian money market, _____ ( i ) is an

      instrument that provides short-term liquidity to the banking system, whereas _____ ( ii) are unsecured, short-term promissory notes issued by large corporations. The _____ ( iii) is an overnight borrowing and lending instrument used between banks and RBI to manage liquidity. ย  Choose the correct set of words for ( i ), (ii), and (iii) from the options below: ย 
      A Call Money, Commercial Papers, Repo Rate Correct Answer Incorrect Answer
      B Treasury Bills, Certificate of Deposit, Reverse Repo Rate Correct Answer Incorrect Answer
      C Call Money, Certificate of Deposit, Treasury Bills Correct Answer Incorrect Answer
      D Treasury Bills, Commercial Papers, Call Money Correct Answer Incorrect Answer
      E Commercial Papers, Call Money, Repo Rate Correct Answer Incorrect Answer

      Solution

      Explanation: ย 

      • Call Money ( i ) : Banks borrow and lend funds for a very short period, typically one day, to manage liquidity. ย 
      • Commercial Papers (ii) : These are unsecured short-term promissory notes issued by corporations to raise funds. ย 
      • Repo Rate (iii) : This is the rate at which RBI lends money to commercial banks for very short durations. ย 

      Practice Next
      More Audit Questions
      ask-question