gs1medium
With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:
- A.Bond market
- B.Forex market
- C.Money market
- D.Stock market
▶ Answer & Explanation
Correct answer: C. Money market
Collateral Borrowing and Lending Obligations (CBLO) are short-term instruments that facilitate the lending and borrowing of funds against collateral. They are primarily used by financial institutions to manage their day-to-day liquidity needs. The CBLO segment operates in the Indian money market, which deals with short-term debt instruments.
Source: UPSC gs1 2024