English

Explain the following term/concept.Call money market

Advertisements
Advertisements

Question

Explain the following term/concept.
Call money market

Short/Brief Note
Advertisements

Solution

It is a market where funds are lent or borrowed for very short periods i.e. one day. The call money market is an important segment of the money market in India. When one bank faces a temporary shortage of cash, then another bank with surplus cash lends money to it. Hence, it is also called as interbank call money market.

shaalaa.com
Types of Financial Market
  Is there an error in this question or solution?
Chapter 11: Financial Market - Exercises [Page 168]

APPEARS IN

Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 11 Financial Market
Exercises | Q 2.4 | Page 168

RELATED QUESTIONS

Write a word or a term or a phrase which can substitute the following statement.
A market which provides long term funds


Write a word or a term or a phrase which can substitute the following statement.
A market which provides short term funds


Write a word or a term or a phrase which can substitute the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.


Write a word, or a term, or a phrase which can substitute for the following statement.

A bill which is issued by Reserve Bank of India on behalf of the Government of India.


Write a word or a term or a phrase that can substitute the following statement.
A market that exclusively deals with the new issue of securities


Money market is the market for the long term funds.


State whether the following statement is true or false
Capital market is the market for the long term funds.


State whether the following statement is true or false
Commercial paper is a secured promissory note.


State whether the following statement is true or false
Treasury bills are issued by commercial banks.


Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.


Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.


Answer in one sentence.
What is Trade Bill?


Explain the following term/concept.
Commercial bills


Answer in brief.
Explain any 4 types of money market instruments.


Answer the following question
State the instruments in money market.


Study the following case/situation and express your opinion.

Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares.
  1. Should it go to the primary market or secondary market to issue its shares?
  2. Should it offer its shares through public offers or rights issues?
  3. What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×