Tag: institutional sources

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Questions Related to institutional sources

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. 

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.