Tag: specialised financial institutions

Quizzes (1) Questions (76)

Questions Related to specialised financial institutions

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

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

Installment credit scheme is introduced by ________.

  1. IDBI

  2. IFCI

  3. UTI

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

Installment Credit Scheme was introduced by IFCI. Under this scheme, better flexibility in repayment period and simplicity in interest calculation is provided. To avail this scheme, the company should have satisfactory track record of its credit worthiness and financial position.

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

The IFCI granted credit assistance to __________.

  1. public limited companies

  2. co-operatives engaged in manufacturing, mining and generation and distribution of electricity

  3. small and medium industries

  4. both (A) and (B)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
  • First, the main function of the IFCI is to provide medium and long-term loans and advances to industrial and manufacturing concerns. It looks into a few factors before granting any loans. They study the importance of the industry in our national economy, the overall cost of the project, and finally the quality of the product and the management of the company. If the above factors have satisfactory results the IFCI will grant the loan.
Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

The UTI started its operation with effect from __________.

  1. July, 1964

  2. February, 1969

  3. March, 1970

  4. March, 1975
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The UTI started its operation with effect from July, 1964. The Unit Trust was set up under the Unit Trust of India Act  1963.It was set up by the Reserve Bank of India. It largely deals with the mutual funds.

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

The SFCs are granted credit assistance to ___________.

  1. large public limited companies

  2. cooperatives

  3. small and medium sized industries

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