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 ualification criteria We discussed how to prepare the bid documents. Let us now see what criteria should be considered to qualify a bidder. You will have to open bidding

What is the potential of having agency problems

The financial manager of A ltd.co. expects that its EBIT in the current year is 10,000. The firm has 5% Deb. Amounting to Rs. 40,000., while 10% Pref. Share amounts to Rs. 20,000.

Illustrate the structure of financial markets? Structure of financial markets: Financial markets can be categorized onto the basis of several parameters as follows: the n

Relationship between Bond Price and Time   (If Interest Rates are Constant) The bond price changes as the bond moves closer to its maturity. If the bond is quoted

i want some presentation slides of this chapter from page 570 to 580

Following is the information furnished by a private port for investing Rs. 10 crore in a 20 Tonne Gantry Crane. The entire funding is from a loan carrying an interest of 11%. The l

What are the negative consequences of a company holding too much cash? A company holding so much cash would be giving up the opportunity to invest much more in income producing a

Explain the significant feature of the wealth maximisation The significant feature of the wealth maximisation criterion is that it considers is that it considers both the quali

The current market value of any real or financial assets is the present value of the cash flows accruing to that asset discounted by a market determined risk-adjusted required rate