Tag: long term sources of finance

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Questions Related to long term sources of finance

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

The Banking Ombudsman scheme started from ______.

  1. June 1994

  2. June 1995

  3. August 1995

  4. January 1995
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Banking Ombudsman scheme was introduced under section 35 A of the Banking Regulation Act, 1949 with effect from 1995. Under Banking Ombudsman scheme, banking ombudsman is appointed by RBi he is a senior official. The official handles and redress customer complaints against deficiency in certain banking services. 

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

Long-term agricultural credit is provided by ________.

  1. Land Development Bank

  2. State Cooperative Bank

  3. Central Cooperative Bank

  4. Commercial Bank
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Long term agricultural credits are provided for land improvement, digging of wells, buying farm animals, purchase of machinery. Most of the expenses are relating to agriculture and other allied land development activities. Such long term agricultural credit is provided by Land Development Bank.

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

The Deposit Insurance Corporation was established in ________.

  1. 1961

  2. 1962

  3. 1963

  4. 1964
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The government of India enacted The Deposit Insurance Corporation Act in 1961. The whole objective of DIC was to provide necessary protection to the depositors from the risk of losing their deposits  and to inspire public confidence in the banking system.  

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

An apex institution in the sphere of development banking in India is ______.

  1. IDBI

  2. IFCI

  3. NABARD

  4. UTI
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Industrial Development Bank of India (IDBI) was established as the apex institution to coordinate the activities of other financial institutions involved in financing, promoting, and developing industries in India.

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

IDBI was made an autonomous institution in _______.

  1. 1969

  2. 1972

  3. 1976

  4. 1982
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

IDBI stands for Industrial Development Bank of India. IDBI was established by the parliament to provide credit and there financial facilities to the developing industries of India.IDBi was made an autonomous institution as its ownership passed on from Reserve Bank of India to the government of India.

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

What does E-banking maintain?

  1. Secrecy transaction

  2. Simple transaction

  3. Easy transaction

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

E- banking refers to electronic banking. E- banking functions with the help of internet and the financial institution's website, hence a lot of data regarding one's account number, bank details etc are required to carry out a transaction. High secrecy is maintained by E-banking system to keep the numbers hidden.

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

The IDBI was established in ______.

  1. July, 1948

  2. July, 1949

  3. July, 1964

  4. July, 1965
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

IDBI stands for Industrial Development Bank of India. 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. 

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

Off-shore banking becomes more easy by _______.

  1. E-banking

  2. EXIM-bank

  3. Rural banking

  4. IMF
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Off shore bank refers to the bank located in a jurisdiction away from where the account holder or depositor resides. As E-banking doesn't require the account holder to be physically present in the bank to make the transaction, off-shore banking becomes much easier with the help of E-banking

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

Functions of development banks:
I. They provide risk capital
II. They grant medium and long-term loans
III. They guarantee loans raised from within and outside the country
IV. They provide assistance for setting up new industrial projects
Which of the given options are correct?

  1. I and II are correct

  2. I, II and IV are correct

  3. I, II and III are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Development banks perform all these functions: providing risk capital, offering medium and long-term loans, guaranteeing loans, and assisting in the establishment of new industrial projects.