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      Question

      Which of the following best describes the term ā€œCall

      Money Marketā€?
      A Market for overnight collateralized borrowing between NBFCs Correct Answer Incorrect Answer
      B Market for intraday liquidity adjustment by primary dealers Correct Answer Incorrect Answer
      C Market for uncollateralized short-term lending between scheduled commercial banks Correct Answer Incorrect Answer
      D Market for repo transactions in government securities Correct Answer Incorrect Answer
      E Market for issuance of short-term treasury bills by RBI Correct Answer Incorrect Answer

      Solution

      The Call Money Market is an uncollateralized money market segment where scheduled commercial banks lend and borrow funds on an overnight basis to manage their liquidity requirements. It is strictly regulated by the RBI and primarily used by banks, not NBFCs.

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