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 IDBI extends financial assistance in an indirect manner through _______.

  1. state finance corporations

  2. state industrial development corporations

  3. commercial banks

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

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

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

  1. February 16, 1969

  2. February 16, 1972

  3. February 16, 1976

  4. February 16, 1982
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

The soft loan scheme is provided by _______.

  1. RBI

  2. IFCI

  3. ICICI

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

The Unit Trust of India (UTI) historically managed various schemes, including those related to soft loans for industrial development, though the role of development banks in India is often shared among institutions like IDBI and IFCI.

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

What are SFCs? 

  1. The regional level development banks

  2. The district level development banks

  3. State financial corporations

  4. Rural development banks
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SFC stands for State Finance Corporation. It promotes medium and small industries of the particular states and also ensures balanced regional development, employment generation and vast ownership of industries.

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

The IFCI has helped in industrial development through __________.

  1. financial assistance

  2. promotional assistance

  3. diversification of industries in backward areas

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

IFCI supports industrial development through a variety of means, including direct financial assistance, promotional activities, and efforts to diversify industries in underdeveloped regions.

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 and Technology Finance Corporation was sponsored by ________.

  1. IRBI

  2. SIDBI

  3. IDBI

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

Risk capital and Technology Finance Corporation (RCTFC), a subsidiary of the Industrial Finance Corporation of India, plans to promote new technologies for industrial use in a big way. Under its scheme, newly-developed technologies would be bought over from scientists, who would be given financial assistance to embark on full-scale commercial projects. 

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

The I.F.C.I. performs the dual functions of a _____________.

  1. financier and promoter

  2. financier and coordinator

  3. co-ordinator and promoter

  4. financier and agent
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

IFCI stands for Industrial Finance Corporation of India. It performs a role of financier by providing long term loans to industrial sector of India for its functions. It also plays a role of promoter by promoting development of  industries and economy of the country.

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

The IFCI sponsored the Risk capital and Technology Finance Corporation in ________.

  1. 1968

  2. 1978

  3. 1988

  4. 1998
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The company Risk capital foundation was converted into the Risk capital and technology finance corporation in 1988 when IFCI introduced the technology and finance and development scheme for financing development and commercialization of indigenous technology. 

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

The State Financial Corporation Act was passed in __________.

  1. September 1951

  2. May 1955

  3. June 1960

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

SFC stands for State Finance Corporations. It promotes medium and small industries of the particular states and also ensures balanced regional development, employment generation and vast ownership of industries. The Sate Financial Corporation Act was later amended in 1962 under State Financial Corporation (Amendment) Act, 1962.

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

The IFCI has set up ________.

  1. the Risk Capital and Technology Finance Corporation

  2. the Investment Information and Credit Rating Agency of India

  3. Merchant Banking and Allied Services Department

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

The IFCi has set up the following:

(i) The Risk Capital and Technology Finance Corporation in 1988

(ii) The Investment Information and Credit Rating agency of India in 1991
(iii) Merchant Banking and allied Services Department in 1986