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
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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Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Question : The commercial banks of India have to maintain a minimum percentage of cash, gold and other securities before lending loans to their customers. This is called the ____________.
Question : The rate at which the Reserve Bank of India lends to other commercial banks for the short term has been reduced. What is this rate called?
Question : Which is the largest commercial Bank of India?
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