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Business Studies · 2022 · 2 marks
CBSE 2022 · Region 1 · Set 2 · Q1
KLM Bank Ltd. is a leading bank with various
branches across the country. On 27th Jan. $\displaystyle 2022$, it faced
a sudden temporary shortage in cash balance in one of its
branches. On the same day, it was decided by its directors
to borrow funds from another bank for two days to
maintain its cash reserve ratio. Identify and explain the money market instrument used by XLM Bank Ltd. to meet its short term funds
requirement.
Marking-scheme solution
Call Money
Call money is a method by which banks borrow from each
other to be able to maintain the cash reserve ratio.
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CBSE Class 12 Business Studies past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.