Multiple choice

Commercial banks can provide loans to housing finance companies to the extent of…………………………of net owned funds of the respective bank.

  1. 2 times

  2. 3 times

  3. 5 times

  4. No limit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There is no specific regulatory limit on the extent of loans commercial banks can provide to housing finance companies relative to their own net owned funds.

Keep practicing — related questions