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Which type of inter-bank borrowing is availed by banks to meet short-term liquidity needs, typically for one day (overnight)?

1. Call Money
2. Notice Money
3. Short Money
4. Half Money

Correct answer: Call Money

Solution

Call Money refers to overnight (1-day) inter-bank lending to meet immediate liquidity needs. Notice Money covers 2-14 days. Term Money is >14 days. Call Money rates fluctuate daily based on demand and are influenced by RBI's repo rate. Note: original question text was corrupted (blank lines).

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