wiz-icon
MyQuestionIcon
MyQuestionIcon
16
You visited us 16 times! Enjoying our articles? Unlock Full Access!
Question

A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit.


A

Creates no effect on other sources.

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

Cheaper in comparison with banks that raise funds from these sources.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C

Expensive in comparison with banks that raise funds from these sources.

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B

Cheaper in comparison with banks that raise funds from these sources.


Answer (b) Cheaper in comparison with banks who raise funds from these sources.

Explanation: Call money is any sort of short-term, interest acquiring monetary credit that the borrower needs to take care of quickly at whatever point the bank requests it. Call money permits banks to procure revenue or interest, known as the call loan rate, on their excess or surplus assets. Call money is commonly utilised by financier firms and brokerage firms for transient funding needs.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Forming Squares
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon