BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scheduled commercial banks
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Co-operative banks
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Financer house of India
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All of the above
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Detailed explanation-1: -It is not exclusively used by banks. Interbank call money market customers can include other financial institutions, mutual funds, large corporations, and insurance companies. Entities transacting within the interbank call money market seek short term loans. Loans typically have a duration of one week or less.
Detailed explanation-2: -It is used for inter-bank transactions. The money that is lent for one day in this market is known as “call money” and, if it exceeds one day, is referred to as “notice money.” Commercial banks have to maintain a minimum cash balance known as the cash reserve ratio.
Detailed explanation-3: -Banks, Primary Dealers (PDs), Development Finance Institutions, Insurance companies, and select Mutual Funds are currently participants in the call money market. PDs and banks can act as both borrowers and lenders in the market.