Multiple choice

What is Call Money?

  1. Money borrowed or lent for a day or over night.

  2. Money borrowed for more than one day but up to 3 days.

  3. Money borrowed for more than one day but up to 7 days.

  4. Money borrowed for more than one day but up to 14 days.

  5. None of these

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A Correct answer
Explanation

Call money refers to funds borrowed or lent for a very short period, typically overnight or for one day. It's a key component of the money market where banks and financial institutions borrow and lend to manage daily liquidity needs. The interest rate for such transactions is called the call money rate.