Economy
2024
Banking in India
Monetary Policy
With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of:
D.Stock market
A.Bond market
C.Money market
B.Forex market
Correct Answer: Option C
Collateral Borrowing and Lending Obligations (CBLO) are money market instruments representing an obligation between a borrower and a lender.
CBLO functions similarly to a bond, where the lender buys the CBLO and the borrower sells it with interest. Key characteristics include:
- Negotiable terms.
- Negotiable interest rates.
- Specifics are negotiable between the parties involved.
In India, CBLOs are operated by the Clearing Corporation of India Ltd. (CCIL) and the Reserve Bank of India (RBI).
Hence, option (c) is the correct answer.
More Economy Questions
Which one of the following is the main objective of the ‘Make in India’ initiative?Economy · 2015In the context of any country, which one of the following would be considered as part of its social ...Economy · 2019Which one of the following is likely to be the most inflationary in its effects?Economy · 2021With reference to the Indian economy, consider the following statements:Economy · 2022Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?Economy · 2017The Service Area Approach was implemented under the purview ofEconomy · 2019The money multiplier in an economy increases with which one of the following?Economy · 2021Consider the following statements:Economy · 2015With reference to Indian economy, demand-pull inflation can be caused/increased by which of the foll...Economy · 2021With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which o...Economy · 2016