Advertisements
Advertisements
Question
Call money helps banks meet which requirements?
Options
Credit demand in times of tight liquidity
Working capital needs for credit sales
Cash reserve requirements
Flotation cost on long-term borrowings
MCQ
Advertisements
Solution
Call money lets banks borrow from each other to meet cash reserve requirements. This borrowing takes place through interbank transactions.
shaalaa.com
Is there an error in this question or solution?
