Call Money

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Also found in: Dictionary, Financial.

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.