Question : Which money market instrument is highlighted in the given statement?
Statement: It is a method under which banks borrow from each other so that CRR is maintained.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: All of the above
Correct Answer:
Call money
Solution : Call money is a method under which banks borrow from each other so that CRR are is maintained. The interest rate used for coal money transaction is known as gold rate which varies from day to day and sometimes even from hour to hour.
Hence, option C is correct.