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Prelims 2024 paper

UPSC CSE Prelims 2024 · GS Paper I · Question 40 · Capital markets, insurance & financial instruments

भारतीय अर्थव्यवस्था के संदर्भ में, “संपार्श्विकीकृत उधार लेन-देन संबंधी दायित्व” निम्नलिखित में से…

UPSC Civil Services (Preliminary) Examination 2024, General Studies Paper I, Question 40 — Capital markets, insurance & financial instruments.

भारतीय अर्थव्यवस्था के संदर्भ में, “संपार्श्विकीकृत उधार लेन-देन संबंधी दायित्व” निम्नलिखित में से किसके लिखत (इंस्ट्रूमेंट) हैं ?

Read this question in English

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

(a) Bond market · (b) Forex market · (c) Money market · (d) Stock market

उत्तर और व्याख्या · explanation in English

Answer: (c) मुद्रा बाज़ार

Collateralised Borrowing and Lending Obligations (CBLO) are money market instruments: short-term loans in which the borrower gives securities as collateral. The Reserve Bank of India itself describes CBLO as a money market instrument, run through the Clearing Corporation of India Ltd (CCIL) from 20 January 2003.

  • ✓ (c) CBLO let banks, mutual funds and other participants borrow and lend funds for short periods against collateral. Short-term borrowing and lending is what the money market does.
  • ✗ (a) The bond market trades long-term debt securities. CBLO is a short-term borrowing and lending tool, not a bond.
  • ✗ (b) The forex market deals in currencies. CBLO involves rupee funds and collateral, not currency exchange.
  • ✗ (d) The stock market trades company shares. CBLO is a debt-like short-term funding instrument.

Remember · CBLO (Collateralised Borrowing and Lending Obligation) is a money market instrument operated through CCIL, used for short-term collateralised funding.

Sources

Question and answer: UPSC's official GS Paper I (2024, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·

Cite this question: UPSC CSE Prelims 2024, Q40 — minimalistias.com/pyqs/prelims/2024/q40

In the UPSC syllabus: Capital markets, insurance & financial instruments › Government securities & the money market See it and tick it covered →

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