Call Money : The day to day surplus funds mostly of banks, are traded as call money. The borrowers are banks faced with a temporary shortage of cash. This may be because of reserve requirements or unforeseen demand for funds. The lenders are banks temporarily in excess of cash. That is why it is also known as the interbank call money market. The call money market is basically over the telephone market. Call money funds are for very short periods, (1 to 15 days) which may or may not be renewed, and their liquidity is next only to cash.
Certificate of **** (CD). It is a time or fixed ** which can be sold in the secondary market. Only a bank can issue a CD. It is a document of title to a time **. It is a bearer certificate and is negotiable in the market. It is issued by banks against deposits kept by companies and institutions. The tenure ranges from 91 days to one year.
