BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
1 day
|
|
|
15 days
|
|
|
30 days
|
|
|
1 year
|
Detailed explanation-1: -UPSC Mains. Q. What is the maximum duration for which term money can be lent/borrowed? Notes: Term Money” means borrowing or lending in unsecured funds for periods exceeding 14 days and up to one year .
Detailed explanation-2: -Where money is borrowed or lend for period between 2 days and 14 days it is known as ‘Notice Money’. And ‘Term Money’ refers to borrowing/lending of funds for period exceeding 14 days.
Detailed explanation-3: -Notes: The term money market is another segment of the uncollateralised money market. The maturity period in this segment ranges from 15 days to one year.
Detailed explanation-4: -The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year.