ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 to 15 days
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15 to 90 days
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15 to 1 years
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1 to 30 days
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Detailed explanation-1: -’Call Money’ is the borrowing or lending of funds for 1day. Where money is borrowed or lend for period between 2 days and 14 days it is known as ‘Notice Money’.
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."
Detailed explanation-3: -Money market transactions are categorized as follows: Borrowing/Lending for 1 day is known as Call Money. Borrowing/Lending for 2-14 days is known as Notice Money. Borrowing/Lending for more than 14 days is known as Term Money.
Detailed explanation-4: -CP can be issued for maturities between a minimum of 15 days and a maximum upto one year from the date of issue. If the maturity date is a holiday, the company would be liable to make payment on the immediate preceding working day.