Question : Which money market instrument is highlighted in the given statement?
Statement: They are generally used by commercial banks to maintain minimum cash balance with Reserve Bank of India.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: All of the above
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Answer (1)
21st Jan, 2024
Correct Answer: Call money
Solution : Call Money method under which banks borrow from each other so that CRR is maintained. Dear generally used by commercial banks to maintain minimum cash balance with the Reserve Bank of India known as cash reserve ratio or CRR.
Hence, option C is correct.
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