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 first development bank was ___________________.

  1. The Industrial Development Bank of Canada

  2. The Industrial Development Bank of U.S.A.

  3. The Industrial Development Bank of England

  4. The Industrial Development Bank of Japan
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Industrial Bank of Japan (IBJ), established in 1902, is widely recognized in economic history as the first development bank of its kind.

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

Which of the following refers to E-banking?

  1. Educational banking

  2. Environment banking

  3. Export-Import bank

  4. Electronic banking
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Electronic banking is also known as Online banking, virtual banking. E banking refers to electronic payment system that enables a customer to conduct certain banking activities and transaction through internet via a the financial institute's website.

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

The Risk Capital foundation is operated by the ________.

  1. UTI

  2. IDBI

  3. IFCI

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

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

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

  1. 1975

  2. 1982

  3. 1990

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

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

The Industrial Finance Corporation of India was established in ________.

  1. July, 1942

  2. July, 1948

  3. July, 1952

  4. July, 1982
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  1. financier

  2. coordinator

  3. promoter

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  1. July 1985

  2. July 1996

  3. July 1993

  4. July 2001
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Industrial Finance Corporation of India (IFCI) was converted into a public limited company in July 1993 to allow for greater flexibility and private participation.

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

The IDBI extends financial assistance to _________.

  1. small industries

  2. medium industries

  3. transporters

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
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.

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

The first term-lending Institution In India was ________.

  1. IDBI

  2. IFCI

  3. LIC

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