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What is the Call Money Market (CMM)?

1. Market for overnight loans between banks
2. Market for long-term government securities
3. Market for foreign exchange
4. Market for corporate bonds

Correct answer: Market for overnight loans between banks

Solution

The call money market is a segment of the money market where banks borrow and lend funds for very short durations, typically overnight. It is used to manage temporary liquidity mismatches.

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