ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 day
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15 days
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30 days
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1 year
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Detailed explanation-1: -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: -Q. What is the minimum duration for which term money can be lent/borrowed? 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: -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."