Call and notice money, Financial Management

These funds represent borrowings made for a period of one day to upto a fortnight. However, the mechanism adopted to lend funds to the call and the notice money markets differs. In the call money market, funds are lent for a predetermined maturity period that can range from a single day to a fortnight. However, with identical range of maturity periods, the funds lent in the notice money market do not have a specified repayment date when the deal is entered into. The lender simply issues a notice to the borrower 2-3 days before the funds are to be repaid. On receipt of this notice, the borrower will have to repay the funds within the given time. While both these funds meet the reserve requirements, banks, however, mostly rely on the call money market. It is here that they raise overnight money i.e., funds for a single day. 

Posted Date: 9/8/2012 5:31:09 AM | Location : United States







Related Discussions:- Call and notice money, Assignment Help, Ask Question on Call and notice money, Get Answer, Expert's Help, Call and notice money Discussions

Write discussion on Call and notice money
Your posts are moderated
Related Questions
Q. Determine Cost of redeemable Debt? Cost of redeemable Debt: - Usually a company issues a debt which is redeemable subsequent to a certain period during its life-time. Such a

Explain why we measure a project's risk as the change in the CV. We compute a project's risk as the change in the coefficient of variation for the reason that this focuses on t

Q. Importance of the Cost of Capital? Importance of the Cost of Capital:- (1) Useful in Designing the Capital Structure: - The perception of cost of capital plays a very imp

Assume a firm has the following cash flows for the next five years: $50,000, $100,000, $150,000, $200,000, and $300,000. We start this business with an initial investment of $250,0

While poverty reduction has become the main goal of development efforts, there is an on-going and sometimes heated debate about the elements that would be at the center of any sens

Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage

You know that Treasury bills have a beta of 0 because they are risk-free.  A portfolio of technology stocks has a beta of 3.  You plan to invest 40% of your investment capital in T

Q. Can you explain about Finance function? Finance function is the most important function of the all business function. It remains a focus of the all activity. It is not possi

I have a assignment of financial accounting Its a report on company Assignment length 2000 words

1) According to the IFE (RIP), if U.S. investors expect a 3% rate of domestic inflation over one year, and a 6% rate of inflation in European countries that use the EUR, and requir