Dhan Samudra is a bank which needs cash for extremely short period in order to meet the new Cash Reserve Ratio (CRR) requirement set by RBI. It is looking for other banks to meet its cash requirements by borrowing from other banks in the industry. However it resorts to a very expensive source of fund .The source of fund has an inverse relationship with other source of funds like commercial paper and certificates of deposits.
Which financial instrument is highlighted in the above case?
Why is this financial instrument considered to be an expensive source of finance?
What type relationship exists between this instrument and commercial paper or certificate of deposit?
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How are clouds formed? How are clouds formed?
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How are clouds formed? How are clouds formed?
How are clouds formHow are clouds formed?
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