Call Money | Notice Money | Term Money

Question 1

What is the term for money borrowed between banks or NBFCs for a single day?

Answer 1

Call money (or overnight money)

Question 2

Describe notice money.

Answer 2

Money borrowed between banks or NBFCs for a period of 2 to 14 days.

Question 3

You need a short-term loan for a period exceeding 14 days, but less than a year. What type of loan is this?

Answer 3

Term money

Question 4

True or False: Call money, notice money, and term money are all components used to calculate the money supply (like M1 or M2).

Answer 4

False. These terms refer to short-term lending between financial institutions, not the broader money supply of an economy.