General Awareness Questions

Q.  Which of the following is not allowed to trade in over-night borrowing market?
A. Scheduled commercial banks
B. Regional rural bank
C. Cooperative banks
D. Primary dealers


a. Only A and B
b. Only B
c. Only A, B, And D
d. Only A And D


ANSWER: See Answer
 
The regional rural bank is not allowed to trade in the over-night borrowing market. Scheduled commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks), and Primary Dealers (PDs), are permitted to participate in the call/notice money market both as borrowers and lenders. Overnight borrowing market, also known as call market, generally involves borrowing and lending of funds for one day and generally takes place against government securities.
 

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