In the Indian money market, funds borrowed for a period ranging from 2 days to 14 days are technically referred to as ___ money.
- notice
- rivalrous (or unregulated common)
- 1999
- 2011-12
Answer: notice
The inter-bank money market is highly segmented by maturity. 'Call money' refers to overnight borrowing (1 day) to meet immediate reserve requirements. 'Notice money' covers short-term borrowing from 2 to 14 days, where the borrower must give a short 'notice' before repaying the funds.