Multiple choice

The market which helps the banks to lend or borrow funds, particularly to maintain CRR and SLR, is known as

  1. money market

  2. call market

  3. treasury market

  4. bank market
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Call Money Market is where banks lend and borrow funds for very short periods (as short as overnight) to meet their reserve requirements like CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio). This interbank market helps banks manage daily liquidity needs.

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