The most volatile part of the Organised Money Market in India is
(1) Government Security Market
(2) Commercial Bill Market
(3) Call Money Market
(4) Certificate of Deposit Market
Answers
Answered by
0
The correct answer is option 3.
Call Money market is the most volatile part of the organised money market in India.
Call money is a short term money market instrument used for interbank transactions.
Call rates are extremely volatile and keeps changing on an hourly or daily basis.
Call Money helps the bank branches to maintain the cash reserve ratio on a daily basis.
Answered by
0
The most volatile organized ‘money market’ is the Call Money Market.
Option: (3)
Explanation:
- The ‘money market’ is regulated and controlled by the Reserve Bank of India. The call money market acts on a short-term money market.
- In the ‘call money market’, there are large financial institutions like banks, corporations, mutual funds, and more who can ‘borrow and lend money’ at interbank rates.
- The ‘call money’ is the finance has a maturity period of ‘one day to fifteen days’ that is repayable on demand, and is used for ‘inter-bank transactions’.
Learn more about Call Money Market
Who are the participants in the call money market?
https://brainly.in/question/10323350
Distinguish between call money market and commercial bill market
https://brainly.in/question/2048116
Similar questions