Which of the following segments of Money Markets is indicator of day to day interest rates?

Which of the following segments of Money Markets is indicator of day to day interest rates?
[A]Term Money Market
[B]Call Money / Notice Money Market
[C]Money Market Mutual Funds
[D]Commercial Bills

Call Money / Notice Money Market
Call Money / Notice Money market is most liquid money market and is indicator of the day to day interest rates. If the call money rates fall, this means there is a rise in the liquidity and vice versa. Interest Rates in Call / Notice Money Markets are market determined i.e. by the demand and supply of short term funds. The intervention of RBI is prominent in the short term funds money market in India and it can influence the rates prominently.

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This question "Which of the following segments of Money Markets is indicator of day to day interest rates?" was published on GKToday on May 30, 2015 at 3:55 pm. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

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