30.During navratras Varun finalises a deal to buy a new house.So he visits a nearby branch of 'Subh Bank' to withdraw Rs.10 lakhs from his account in order to pay the token money to the seller.In the bank he observes that a large number of customers are present to make cash with drawls probably because it is an auspicious time to make purchases.After sometime he overhearsone of the bank staff members telling his colleague that Today 'Subh Bank' is likely to fall short of cash and to make up for the deficit and maintain its cash reserve ratio it will have to approach another bank. In context of the above case: 1.Identify the instrument that 'Subh Bank' will use to meet its short term requirements of funds.(1) 2.State any three feature of the instrument as identified in part 1.(3)
Answers
Answered by
3
Answer:
1st instrument = call money
Explanation:
2nd = three features
☆ it is short term finance which is repayable on demand with a maturity period of I to 15 days
☆ The interest paid on call money loans is known as call rate. It is highly volatile rate that varies from day to day and some times even from hour to hour.
☆it is a intra bank transaction and it is also called as intra bank call money market
Similar questions