Consider the following statements:

  1. Call Money refers to the borrowing or lending of funds for 1 day
  2. Notice Money refers to the borrowing and lending of funds for 2-14 days
  3. Term money refers to borrowing and lending of funds for a period of more than 14 days but less than 90 days

Which of the above is / are correct statements?

Answer: [A] Only 1 & 2

The Third statement is not correct in this question. Term money refers to borrowing and lending of funds for a period of more than 14 days (90 day limit does not exist)

This question is a part of GKToday's Integrated IAS General Studies Module