It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.

(a) Commercial papers

(b) None of the above

(c) Call money

(d) Commercial bill

Answer (c) Call money

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.

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