What do you understand by the term 'Call Money' ?

A Inter-bank short-term lending and borrowing
B Borrowing from central bank
C Lending by commercial banks to insurance companies
D Lending by leasing companies to industrial sector

Correct Answer: Inter-bank short-term lending and borrowing

Call money is a short - term, interest - paying loan from one to 14 days made by a financial institution to another financial institution. The interest charged on a call loan between financial institutions is referred to as the call loan rate.
Bissoy MCQ

Related Questions

What do you understand by the term 'Call Money'?
What do you understand by the term Call Money?
Answer the question on the basis of the given information. Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers. Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?
`I shall call you on Friday. Here 'call' is widely used as--

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