gs1medium

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

  1. A.Bond market
  2. B.Forex market
  3. C.Money market
  4. D.Stock market
▶ Answer & Explanation

Correct answer: A. Bond market

Collateral Borrowing and Lending Obligations (CBLO) are instruments of the money market. CBLO is a money market instrument developed by the Clearing Corporation of India Ltd (CCIL) to facilitate repo transactions and meet the temporary liquidity needs of market participants by allowing them to borrow or lend funds against eligible securities.

Source: UPSC gs1 2024

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