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Lending Operations and Lending Risks
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1.
What do we call the money that is lent for one day in the call money market?
Call Money
Notice Money
Term Money
Day Money
2.
Why do banks borrow money in the call money market?
To meet sudden demand for funds arising out of large outflows
To fill the temporary mismatches in funds
To meet the Statutory reserve requirements
All of the above
3.
What do we call the money that is lent for more than one day but less than 15 days in the call money market?
Call Money
Term Money
Notice Money
None of the above
4.
What is the maturity period of Money Market Instruments?
Less than 15 days
Less than 1 year
Less than 181 days
Less than 90 days
5.
What do we call the facility given to a current account holder of withdrawal of more amount than his deposit?
Overdraft
EMI
Sweep-in Facility
Recurring Deposit
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