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Question : Case Study 19:

MNO Ltd. is a startup in the food and beverage sector aiming to raise funds for expanding its product range.

Question : 

To raise short-term funds for marketing its expanded product range, which money market instrument might MNO Ltd. use?

Option 1: Debenture
 

Option 2: Call money
 

Option 3: Corporate bond

 

Option 4: Equity share


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Call money


Solution : The correct answer is (b) Call money

Call money refers to short-term borrowing and lending of funds in the money market. It is typically an unsecured borrowing or lending for a very short duration, often overnight. Using call money, MNO Ltd. can access short-term funds quickly and efficiently, allowing them to fund their marketing efforts for the expanded product range without committing to long-term obligations. It's a suitable choice for short-term financial needs in the realm of marketing and operational activities.

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