Question : Which money market instrument is highlighted in the given statement? Statement: The changes in CRR affects the amount of funds available to be given as loans by commercial banks.
Option 1: Treasury bill
Option 2: Call money
Option 3: Certificate of deposits
Option 4: Commercial bill
Correct Answer: Call money
Solution : Call money or call loans means that loan document the payment for which can be made at a short note is either by the borrower or the lander. Under this the maturity period of the loan is between 1 and 15 days. On this very basis it can be seen, call loans are absolutely liquid. The changes in CRR affect the amount of funds available to be given as loans by commercial banks.
Hence, option B is correct.
Question : Which money market instrument is highlighted in the given statement? Statement: It is issued by the schedule commercial banks and The Financial institutions like IDBI IFSC ICICI and exim Bank.
Question : Which money market instrument is highlighted in the given statement? Statement: It is used to finish the credit sales.
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 2: Commercial paper
Option 3: Call money
Option 4: All of the above
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