Tag: sources of business finance - 2

Questions Related to sources of business finance - 2

The Risk Capital foundation is operated by the ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. UTI

  2. IDBI

  3. IFCI

  4. SFCs

Show answer
Correct Option: C
Explanation:

Risk Capital refers to the funds used for high-risk investments. Risk Capital foundation was set up by IFCI in 1975  with a view to encourage entrepreneurship and increase entrepreneurial base by providing start up capital for setting up green field projects.  

IDBI has set up the IDBI bank Ltd. since ______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. 1975

  2. 1982

  3. 1990

  4. 1964

Show answer
Correct Option: D
Explanation:

IDBI stands for Industrial Development Bank of India. It constituted under the under the Industrial Development Bank of India Act, 1964. IDBI was established by the parliament to provide credit and there financial facilities to the developing industries of India. It is owned by the government of India. 

The Industrial Finance Corporation of India was established in ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. July, 1942

  2. July, 1948

  3. July, 1952

  4. July, 1982

Show answer
Correct Option: B
Explanation:

The Industrial Finance Corporation of India was established after the independence under the Industrial Finance Corporation Act, 1948. It is owned by the government of India. It was set up to cater to the long term financial needs of industrial sector of India.

The primary objective of the IDBI was to act as a ______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. financier

  2. coordinator

  3. promoter

  4. all of the above

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Correct Option: B
Explanation:

IDBI stands for Industrial Development Bank of India. It was established under the Industrial Development Bank of India Act, 1964. The main objective for this establishment was to set up an apex institution to coordinate the activities of other financial institution.

The IFCI is converted into a Public Limited Company with effect from_____________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. July 1985

  2. July 1996

  3. July 1993

  4. July 2001

Show answer
Correct Option: C

The IDBI extends financial assistance to _________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. small industries

  2. medium industries

  3. transporters

  4. all of the above

Show answer
Correct Option: D
Explanation:

IDBI stands for Industrial Development Bank of India. IDBI is an apex financial institution in the arena of development banking. It provides financial assistance in the form of long term loans, debentures, etc to industries which helps an all round development of small industries, large industries, medium industries, industries providing transportation service.

The first term-lending Institution In India was ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. IDBI

  2. IFCI

  3. LIC

  4. UTI

Show answer
Correct Option: B
Explanation:

IFCI stands for Industrial Finance Corporation of India. Term- lending refers to loan term loans which extend upto more than one year. IFCI is was established after independence owned by Indian government and it caters to the long term financial needs of industrial sector. 

The IDBI extends financial assistance in an indirect manner through _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. state finance corporations

  2. state industrial development corporations

  3. commercial banks

  4. all of the above

Show answer
Correct Option: D
Explanation:

IDBI can assist industrial concerns indirectly also by financing those banks and financial institutions who are lending to industrial concerns. All above listed financial institutions cater to an industry's financial needs and also to the development of industries all over India. 

The Industrial Development Bank of India was delinked from the RBI with effect from _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. February 16, 1969

  2. February 16, 1972

  3. February 16, 1976

  4. February 16, 1982

Show answer
Correct Option: C
Explanation:

IDBI stands for Industrial Development Bank of India. It was established under the Industrial Development Bank of India Act, 1964. The ownership of IDBI has been transferred to the central government. It was done to achieve more effective coordination among all financial institutions of India and the enlarge the role of IDBI as the apex financial institution.

The soft loan scheme is provided by _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. RBI

  2. IFCI

  3. ICICI

  4. UTI

Show answer
Correct Option: D