BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commercial Paper
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Certificate of Deposit
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Collateralized Borrowing and Lending Obligations (CBLO)
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Call Money
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Detailed explanation-1: -Call money is mainly used by the banks to meet their temporary requirement of cash. They borrow and lend money from each other normally on a daily basis. It is repayable on demand and its maturity period varies in between one day to a fortnight. The rate of interest paid-on-call money loan is known as the call rate.
Detailed explanation-2: -Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis? Explanation: Call money market is a market for uncollateralized lending and borrowing of funds.
Detailed explanation-3: -Open market operation (OMO) is a monetary policy by the central bank in which the bank deals in the sale and purchase of securities in the open market to control the supply of money in the economy.
Detailed explanation-4: -Explanation: Small finance banks can distribute mutual funds, insurance products and other simple third-party financial products.