Practicing Success
Practicing Success
CUET Preparation Today
| Assertion (A): There exists an inverse relationship between call rate and other short-term money market instruments. Reason (R): A rise in call rate makes other sources of finance like certificate of deposit and commercial paper cheaper and banks raise funds from these sources. |
Both A and R are true and R is the correct explanation of A
Both A and R are true but R is not the correct explanation of A
A is true but R is false
A is false but R is true |
| Both A and R are true and R is the correct explanation of A |
| There is an inverse relationship between call rates and other short-term money market instruments such as certificates of deposit and commercial paper. A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit cheaper in comparison for banks raise funds from these sources. |
