Question

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

• A. a) i, and ii
• B. b) i, ii, iii
• C. c) i, ii, iv
• D. d) ii, iii,iv

Answer 1

The correct option is D d) ii, iii,iv

Ans: D
Explanation: Money market is the market for short term lending and borrowing and deals with secured loans and UNSECUREDloans.