Financial Awareness - Risk, Stability & Emerging Finance
Which of the following participants plays a crucial role in the Indian money market by borrowing and lending funds on an overnight basis?
Which of the following participants plays a crucial role in the Indian money market by borrowing and lending funds on an overnight basis?
medium Q5 of 15
Step-by-Step Solution
Step 1: Understand money market participants
Call money market participants borrow and lend funds on an overnight basis, providing liquidity.Step 2: Analyze options
Mutual funds and insurance companies are investors but not primary participants in call money market. Foreign institutional investors mainly operate in capital markets.Final Answer:
Call Money Market Participants → Option DQuick Check:
Call money market = overnight borrowing and lending ✅
Quick Trick: Call money market = overnight funds market.
Common Mistakes:
- Confusing mutual funds or FIIs as call money market players.
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