Question : Commercial banks are active participants in which market?
Option 1: Money market
Option 2: Capital market
Option 3: Forex market
Option 4: Housing market
Answer (1)
17th Jan, 2024
Correct Answer:
Money market
Solution : The correct answer is (a) Money market.
Commercial banks are active participants in the money market. The money market is a segment of the financial market where short-term borrowing and lending of funds occur. Commercial banks play a significant role in the money market by lending and borrowing funds for short durations.Commercial banks' involvement in the money market allows them to manage their liquidity, earn short-term interest income, and meet the short-term financing needs of their customers.
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