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    Question

    Which among the following cannot take part in raising

    funds from the money market in India?
    A Scheduled Commercial Banks Correct Answer Incorrect Answer
    B Regional Rural Banks Correct Answer Incorrect Answer
    C Cooperative Banks Correct Answer Incorrect Answer
    D Both B and C Correct Answer Incorrect Answer
    E All are eligible Correct Answer Incorrect Answer

    Solution

    The money market can be tapped by the scheduled commercial banks except the regional rural banks, cooperative banks, primary dealers etc. The funds raised are mainly used to address the mismatch of funds. The money market is used for short term loans and trading and that is why the risk factor is very low here with the returns also being vey less. The participants in this market need to maintain a current account with RBI because of the short duration of trading in this market.

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