Detailed Explanation:

Answer: Option 3 — Money market

Collateral Borrowing and Lending Obligations (CBLO) are money market instruments that facilitate short-term borrowing and lending operations on a fully collateralized basis. Introduced by the Clearing Corporation of India Ltd (CCIL), CBLOs allow entities such as banks, financial institutions, mutual funds, and corporates to manage their short-term liquidity requirements securely by using government securities as collateral.

📝 Short Notes: Money Market Instruments in India

• Treasury Bills (T-Bills): Short-term government securities issued for 91, 182, and 364 days; sold at discount and redeemed at face value.
• Commercial Papers (CPs): Unsecured promissory notes issued by highly-rated corporations to meet short-term funding needs; maturity period of 7 days to 1 year.
• Certificate of Deposit (CD): Negotiable time deposits issued by commercial banks and financial institutions; maturity ranges from 7 days to 1 year.
• Call and Notice Money: Very short-term inter-bank lending; call money is overnight, notice money ranges from 2 to 14 days.
• Repurchase Agreements (Repo): Short-term borrowing where securities are sold with an agreement to repurchase at a predetermined rate.
• CBLO: Introduced in 2003 by CCIL; a collateralized money market instrument available to all entities with access to the clearing corporation; provides safer alternative to call money market.