Question

Mahindra Bank wants short-term finance for only one or two days. What option should it pick?

Options

• Treasury bills

• Call Money

• Commercial Paper

• None of the above

Answer 1

Call Money

Explanation -

Call money is primarily used by banks to cover their short - term cash needs.  They don't lend and borrow money from each other on a daily basis. 

It's repaid on demand and has a. 

The maturation period varies from one day to a fortnight.