economics medium Fill in the Blank

In the Indian money market, funds borrowed for a period ranging from 2 days to 14 days are technically referred to as ___ money.

  1. notice
  2. rivalrous (or unregulated common)
  3. 1999
  4. 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.

Topic Financial Markets - Money Market
Exam Relevance Banking, SSC, UPSC
More economics Questions Back to all questions