is a short term lending instrument used only by banks on interbank lending.

Treasury Bill

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Commercial paper

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Trade Bill

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Call Money

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Solution

The correct option is D Call Money
Call Money is a short term lending instrument used only by banks on interbank lending.

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Similar questions

___ is a short-term lending instrument used only by banks on interbank lending.

Q41) With regarding to money market in India, consider the following statements

i) Money market is the market for short term lending and borrowing and deals only with secured loans

ii) Call money and notice money are important instruments of money market

iii) If the lending/borrowing is for only one day it is called call money

iv) If the lending /borrowing is for 2-14 days it is called notice money

Identify the correct statement/s

Banks lend money by charging a certain amount of fee. The additional charge is known as ______________.

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