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Question : Which money market instrument is highlighted in the given statement?
Statement: They are generally used by commercial banks to maintain minimum cash balance with Reserve Bank of India.

Option 1: Treasury bill

Option 2: Commercial paper

Option 3: Call money

Option 4: All of the above


 


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Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Call money


Solution : Call Money method under which banks borrow from each other so that CRR is maintained. Dear generally used by commercial banks to maintain minimum cash balance with the Reserve Bank of India known as cash reserve ratio or CRR.

Hence, option C is correct.

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