Answer-What is Notice Money?

Q: Answer-What is Notice Money?

In call money markets funds are traded for short term less than 15 days. Term money refers to funds deployed for 15 days or more. The funds which are lent for 1 day is called call money and those which are lent for 2-14 days are called Notice Money

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What is Notice Money?

Question

What is Notice

Money?

A Money borrowed or lent for a day or over night Correct Answer Incorrect Answer

B Money borrowed for more than one day but up to 3 days Correct Answer Incorrect Answer

C Money borrowed for more than one day but up to 7 days Correct Answer Incorrect Answer

D Money borrowed for more than one day but up to 14 days Correct Answer Incorrect Answer

E None of these Correct Answer Incorrect Answer

Solution

In call money markets funds are traded for short term (less than 15 days). “Term money” refers to funds deployed for 15 days or more. The funds which are lent for 1 day is called “call money” and those which are lent for 2-14 days are called “Notice Money”

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Relevant for Exams:

RBI Grade B

UPSC EPFO (APFC)

UPSC

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