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Question : Case Study 14:

ABC Ltd. is a startup in the e-commerce industry looking to expand its product offerings.

Question : 

To raise short-term funds for marketing its expanded product range, which money market instrument might ABC Ltd. use?

Option 1: Debenture
 

Option 2: Call money
 

Option 3: Corporate bond

 

Option 4: Equity share


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Call money


Solution : The correct answer is (b) Call money

To raise short-term funds for marketing its expanded product range, ABC Ltd. might consider using call money. Call money is a short-term finance option borrowed or lent in the interbank market for very short durations, usually overnight. It's often used for short-term funding needs and would be suitable for supporting marketing initiatives for the newly expanded product offerings.

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