#IT

Question : It is a short term finance repayable on demand it is used for interbank transactions. Which money market instrument is highlighted in the given statement?

Option 1: Treasury bill

Option 2: Commercial paper

Option 3: Call money

Option 4: Commercial bill

 


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Call money


Solution : Call money is redeemed on demand whose maturity period varies from 1 day to 15 days it is used for interbank transactions. Call Money used by banks to maintain the CRR(cash reserve ratio).

Hence, option C is correct.

Related Questions

CLAT Current Affairs with GK ...
Apply
Stay updated with current affairs & check your preparation with the CLAT General Knowledge Mock Tests Ebook
CLAT English Language Mock Tests
Apply
Free Ebook - CLAT 2025 English Language questions with detailed solutions
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
CLAT Legal Reasoning Mock Tests
Apply
Free Ebook - CLAT 2025 legal reasoning questions with detailed solutions
GIBS Business School Bangalor...
Apply
100% Placements with 220+ Companies
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books