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: A. Bond market
Collateral Borrowing and Lending Obligation (CBLO) is a money market instrument. It is a part of the Indian money market and allows entities to borrow or lend funds against collateral. This facilitates short-term liquidity management for financial institutions.
Source: UPSC gs1 2024