Q. With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

Explanation:

Collateral Borrowing and Lending Obligations

Collateral Borrowing and Lending Obligations (CBLO) are short-term instruments used in the money market. They are used for borrowing and lending funds on a collateralized basis. The CBLO system is operated by the Clearing Corporation of India Ltd. (CCIL) and provides a platform for entities to borrow and lend funds against collateral, typically government securities. This helps in managing short-term liquidity needs and is a crucial part of the money market operations in India.