Correct option is C
Collateralized Borrowing and Lending Obligations (CBLO) are a type of money market instrument in India. These instruments are used for short-term borrowing and lending, typically between financial institutions such as banks, mutual funds, and insurance companies.
Key Features:
- Collateralized: The borrowing in CBLO is secured by collateral, usually government securities, ensuring lower credit risk.
- Money Market Instrument: CBLO operates in the money market, which deals with short-term lending and borrowing, typically with maturities of up to one year.
- Purpose: CBLO allows institutions with surplus funds to lend money and earn interest, while those in need of funds can borrow against the collateral they provide.
