With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :
A
Bond market
B
Forex market
C
Money market
Correct answer
D
Stock market
Explanation
The Collateralised Borrowing and Lending Obligation (CBLO) was a money market instrument run by the Clearing Corporation of India. It let banks and other institutions borrow and lend for short periods, from one day up to a year, against government securities as collateral, and it was replaced by tri-party repo in 2018. Money markets deal in short-term funds, which is why CBLO belongs there.
Financial Markets