BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following types of institutions operate in the call money market only as lender?
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Commercial banks
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Primary dealers
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Insurance companies
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SBI
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Explanation:
Detailed explanation-1: -The entities permitted to participate both as lender and borrower in the call/notice money market are Scheduled Commercial Banks (excluding RRBs), Co-operative Banks (other than Land Development Banks) and Primary Dealers (PDs).
Detailed explanation-2: -The major players and institutions of this market are the Reserve Bank of India, all the commercial banks of the country, NBFC’s, LIC, Mutual Funds, large corporates, and even the respective state governments.
There is 1 question to complete.