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Which entities are the main participants in the Call Money Market in India?

easy Q3 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which entities are the main participants in the Call Money Market in India?
AInsurance companies only
BIndividual investors
CMutual funds
DBanks and financial institutions
Step-by-Step Solution
  1. Step 1: Identify participants

    The Call Money Market is an interbank market primarily involving certain financial entities.
  2. Step 2: Apply the concept

    Main participants are banks and financial institutions who borrow and lend funds to manage liquidity.
  3. Final Answer:

    Banks and financial institutions → Option D
  4. Quick Check:

    Call Money Market participants = banks and financial institutions ✅
Quick Trick: Remember, Call Money Market is mainly interbank.
Common Mistakes:
  • Assuming individuals or mutual funds are main participants.
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