Which is a source of financing to meet v

CUET Preparation Today

Start Free Mocks

Home Questions EQNKTEKHYX

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Which is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.

Options:

Treasury Bill

Commercial paper

Certificate of deposit

Call Money

Correct Answer:

Call Money

Explanation:

Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions.