An instrument of short-term finance repayable on demand, with a maturity period of one to fifteen days, used for interbank transactions.
Identify the money market instrument from this statement.
An instrument of short-term finance repayable on demand, with a maturity period of one to fifteen days, used for interbank transactions.
Identify the money market instrument from this statement.
Solution
✅ Correct Option: 3
Call money is short-term finance repayable on demand with a maturity of one day to fifteen days, used for inter-bank transactions, mainly by banks to maintain CRR. Treasury bills and commercial papers have longer maturities and different issuers.
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