Advertisements
Advertisements
Question
Explain the following term/concept.
Call money market
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.
APPEARS IN
RELATED QUESTIONS
Central government is a borrower in the money market through the issue of ______.
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
State whether the following statement is true or false
Money market is the market for the long term funds
State whether the following statement is true or false
Secondary market is commonly known as stock market.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
Find the odd one.
Complete the sentence.
When trade bills are accepted by commercial banks, it is known as _________.
Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.
Complete the sentence.
In capital market the instruments traded have maturity period of more than ______ year.
Answer in one sentence.
What is call money market?
Answer in one sentence.
What is Certificate of Deposits?
Explain the following term/concept.
Money market
Explain the following term/concept.
Commercial bills
Justify the following statement.
Money market makes available short term finance through different instruments.
Justify the following statement.
There are many participants 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. |
- Should it go to the primary market or secondary market to issue its shares?
- Should it offer its shares through public offers or rights issues?
- What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
