Question

What does CBLO stand for?

A Collective Bank Lending Obligation Correct Answer Incorrect Answer
B Collective Borrowing Lending Obligation Correct Answer Incorrect Answer
C Collateralized Bank Lending Obligation Correct Answer Incorrect Answer
D Collateralized Borrowing and Lending Obligation Correct Answer Incorrect Answer

Solution

CBLO stands for "Collateralized Borrowing and Lending Obligation." It is a money market instrument in India that allows market participants to borrow and lend funds in a collateralized manner, using government securities as collateral. This helps in managing short-term liquidity requirements and optimizing the utilization of available funds in the financial markets.

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