GENERAL KNOWLEDGE

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’. And ‘Term Money’ refers to borrowing/lending of funds for period exceeding 14 days.

Detailed explanation-2: -Example of the Call Money Rate for a large client that’s looking to buy the shares on margin. The client will pay the broker in full within 30 days. The broker will then borrow the needed money from a bank so that the client can buy shares now.

Detailed explanation-3: -Introduction. Call money is also referred to as the money at call. It is a short-term loan which is due to be paid immediately in full as and when demanded by the lender. Not similar to a term loan, call money loan does not have a defined schedule of payment and maturity.

Detailed explanation-4: -’At call’ money is repayable on demand, whereas ‘short notice’ money implies that notice of repayment of up to 14 days will be given. After cash, money at call and short notice are the banks’ most liquid assets.