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It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.Answer choicesSelect only one optionREVISITCommercial papersTreasury billDebenturesCall money

Question

It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.Answer choicesSelect only one optionREVISITCommercial papersTreasury billDebenturesCall money

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Solution

The correct answer is Call money. This is the method by which banks borrow from each other to be able to maintain the cash reserve ratio.

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It is used as an alternative to bank borrowing for large and creditworthy companies,Answer choicesSelect only one optionREVISITCommercial papersTreasury billDebenturesCall money

It is an instrument of short-term borrowing by the Government of India maturing in less than one year. (a) l (b) (c) (d) None of the aboveAnswer choicesSelect only one optionREVISITCommercial bilTreasury billCall moneyShares

Reserves of cash kept with itself by a bank to meet its payment requirements is called

The Federal Reserve mandates that banks must keep a certain percentage of money on hand at particular times. What is this referred to as?Multiple Choicereserve requirementmandated moneyM1ratio of reservationM3

Refers to a lump sum of money that a borrower borrows from a bank and agrees to repay over a specific period of time.

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