Economics · Money Market
Which of the following statements correctly differentiates between call money, notice money, and term money in the Indian money market? Statement 1: Call money refers to the borrowing or lending of funds for a period of exactly 1 day (overnight). Statement 2: Notice money refers to the borrowing or lending of funds for a period spanning from 2 days to 14 days. Statement 3: Term money refers to the borrowing or lending of funds for a period exceeding 14 days and up to 1 year. Statement 4: The interest rate in these markets is strictly fixed by the RBI and does not fluctuate based on market forces.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statements 1, 2, and 3 only✓
- 2Statements 2, 3, and 4 only
- 3Statements 1 and 3 only
- 4Statements 1, 2, 3, and 4
Correct answer
Statements 1, 2, and 3 only
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