CBLO is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan. CBLO stands for

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Central Borrowing and Lending Obligation
B	Collateralized Borrowing and Lending Organisation
C	Collateralized Borrowing and Lease Obligation
D	Collateralized Borrowing and Lending Obligation

Explanation:

Detailed explanation-1: -A collateralized borrowing and lending obligation (CBLO) is a money market instrument that represents an obligation between a borrower and a lender concerning the terms and conditions of a loan.

Detailed explanation-2: -What is CBLO surgery? CBLO stands for centre of rotation of angulation (CORA)-Based Levelling Osteotomy.

Detailed explanation-3: -CBLO is an obligation by the borrower to return the borrowed money at a specified future date. CBLO is a discounted instrument available in electronic book entry form for the maturity period of 1 day to 19 days.

Detailed explanation-4: -The uniqueness of CBLO is that lenders and borrowers use collateral for their activities. For example, borrowers of fund have to provide collateral in the form of government securities and lenders will get it while giving loans. There is no such need of a collateral under the call money market.

Detailed explanation-5: -Collateralized Borrowing and Lending obligation (CBLO) was introduced in the Indian money market in 2003 by Clearing Corporation of India (CCIL).

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