Q » Define call money market.
06 Dec, 2025
A » The call money market is a segment of the financial system where short-term funds are borrowed and lent, typically overnight, between financial institutions. It facilitates liquidity management for banks and is integral to the monetary policy transmission mechanism. Interest rates in this market, known as call rates, can fluctuate based on the supply and demand for funds, reflecting the central bank's monetary policy stance and overall economic conditions.
06 Dec, 2025
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