Question : Case Study 19:
MNO Ltd. is a startup in the food and beverage sector aiming to raise funds for expanding its product range.
Question :
To raise short-term funds for marketing its expanded product range, which money market instrument might MNO Ltd. use?
Option 1: Debenture
Option 2: Call money
Option 3: Corporate bond
Option 4: Equity share
Correct Answer:
Call money
Solution : The correct answer is (b) Call money
Call money refers to short-term borrowing and lending of funds in the money market. It is typically an unsecured borrowing or lending for a very short duration, often overnight. Using call money, MNO Ltd. can access short-term funds quickly and efficiently, allowing them to fund their marketing efforts for the expanded product range without committing to long-term obligations. It's a suitable choice for short-term financial needs in the realm of marketing and operational activities.
Related Questions
Trending Articles/News
