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: 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

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