Which one of the following is false with respect to interest structure in the Indian money market?

Correct option is C

Call rates represent the interest rates at which banks borrow funds from each other for a short period, usually overnight. They are influenced by the liquidity conditions in the market. However, call rates do not necessarily act as a cap rate for the term money market. The term money market refers to borrowing and lending of funds for a longer duration, typically ranging from a few days to several months. The interest rates in the term money market are influenced by various factors, including market demand and supply, policy rates, and market expectations. Therefore, statement C is false.