Question

    In which market are funds typically transacted on an overnight basis?

    A Notice Money Market Correct Answer Incorrect Answer
    B Call Money Market Correct Answer Incorrect Answer
    C Capital Market Correct Answer Incorrect Answer
    D Inter-Bank Market Correct Answer Incorrect Answer

    Solution

    The call money market is where financial institutions borrow and lend funds on an overnight basis, unlike the notice money market where the duration is between 2 to 14 days.

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