Q. The loan that is made for a short period of time, for few days or a week is called as :

A
Personal Loan
B
Call Money
C
Deficit Amount
D
Elasticity
Solution:

The call money market (CMM) the market where overnight (one day) loans can be availed by banks to meet liquidity. Banks who seeks to avail liquidity approaches the call market as borrowers and the ones who have excess liquidity participate there as lenders. The CMM is functional from Monday to Friday.

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