Mahindra Bank wants short-term finance for only one or two days. What option should it pick?
A. Treasury bills
B. Call Money
C. Commercial Paper
D. None of the above
Answer:B
Mahindra Bank wants short-term finance for only one or two days. What option should it pick?
A. Treasury bills B. Call Money C. Commercial Paper D. None of the above
Explanation: Call money is mainly used by the banks to meet their temporary requirement of cash. They borrow and lend money from each other normally on a daily basis. It is repayable on demand and its maturity period varies between one day to a fortnight.