Which is / are the essential feature(s) of a call money market?

Maturity period of 1 - 14 days

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Market determined interest rates

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low liquidity

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High agency costs

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Both (A) and (B) above

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Solution

The correct option is E Both (A) and (B) above
The call money market is most liquid of all short term money market segments and the maturity period for call loans vary from 1 to 14 days. In call money market any amount could be lent or borrowed at an interest rate which is acceptable to both borrower and lender, i.e. they are market-determined interest rates.

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माँग मुद्रा (Call Money) बिना किसी संपार्श्विक के एक अल्पकालिक ब्याज वाला ऋण है।
माँग मुद्रा बाज़ार में ब्याज दरें भारतीय रिज़र्व बैंक द्वारा निर्धारित की जाती हैं।
गैर-बैंकिंग वित्तीय संस्थानों को माँग मुद्रा बाज़ार में भाग लेने की अनुमति नहीं है।

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