Discuss Forum
1. What is call money rate ?
- A. lending rate of central Bank
- B. lending rate of central Bank
- C. lending rate of central Bank
- D. lending rate of central Bank
Answer: Option C
Explanation:
Call money is minimum 5% short - term finance repayable on demand, with a maturity period of one to fourteen days or overnight to a fortnight. It is used for inter - bank transactions.
The money that is lent for one day in this market is known as "call money" and, if it exceeds one day, is referred to as "notice money.
Post your comments here: