Call Money


Also found in: Dictionary, Financial.
Related to Call Money: term money, Call money rate, Treasury bills

Call Money

 

a form of short-term commercial credit that must be paid back by the borrower upon the first demand of the creditor.

Capitalist banks give such credit against promissory notes, commodities, and securities. The interest rates for call loans are lower than for term loans. This is advantageous for capitalist firms and enterprises that use call money to meet urgent short-term credit requirements. Call loans are bank assets that have high liquidity; they may be called in at any time. Under imperialism call money drawn against securities is frequently used for stock market speculation. Call money is not employed by socialist banks.

References in periodicals archive ?
Another member proposed "establishing a numerical target" for the unsecured overnight call money rate and "implementing a slight easing of policy by setting the target around 0.
The BOJ thereby re-adopted the unsecured overnight call money rate as a monetary policy target instead of using the outstanding balance of current account deposits held by private financial institutions at the central bank.
At the upcoming Policy Board meeting, the central bank is also expected to decide to increase the official discount rate, which serves as the ceiling for the overnight call money rate, to between 0.
The BOJ chief also said the call money market has begun to recover the function of interest rate formation and the overnight call rate has started to reflect financial market environments.
Following the BOJ's move, the overnight unsecured call money rate fell to 0.
5 trillion yen into the money market -- a record for a BOJ same-day operation -- to put downward pressure on unsecured overnight call money rates.
The new rate matches the low seen in May and June of 1999, when the central bank guided the call money rate to nearly zero.
The central bank's eight-member Policy Board voted unanimously to keep the target rate for unsecured overnight call money on hold.
Further monetary easing measures would include a return to the zero interest rate policy, under which the target for the call money rate is driven to around zero.
Asked to comment on the Bank of Japan's decision last week to guide the key unsecured overnight call money rate to around 0.
The central bank's policy board has unanimously decided to keep the target rate for unsecured overnight call money on hold, it said.
The central bank has injected fresh liquidity into the money market as overnight call money rates on borrowing by foreign banks remained in the mid-0.