Tag: long term sources of finance

Questions Related to long term sources of finance

Industrial banks are also known as___________.

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

  1. NABARD

  2. RRB's

  3. Morris bank

  4. EXIM bank

Show answer
Correct Option: C
Explanation:

Just as investment banks, industrial banks sell certificates that are labelled as investment share. This helps public to invest in such bonds and certificates through industrial banks. Hence, Industrial banks are also known as investment banks.

Mixed banking system is found in _________.

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

  1. India

  2. U.S.A.

  3. Germany

  4. Soviet Russia

Show answer
Correct Option: C
Explanation:

German banking system is the best example of mixed banking system. German banks perform large variety of functions which includes functions of a commercial bank as well as investment bank. These banks can also be called as universal banks.

Unit Banking system was originated in __________.

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

  1. USA

  2. England

  3. India

  4. Pakistan

Show answer
Correct Option: A
Explanation:

Unit Banking System refers to a single and usually small banks providing financial services to local people. Such banks do not have any connecting branches. The concept of Unit Banking System was originated in USA.

The reserve bank staff college is located at __________.

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

  1. Pune

  2. Chennai

  3. Mumbai

  4. New Delhi

Show answer
Correct Option: B
Explanation:

RBI stands for Reserve Bank of India, RBI commenced with its operations from 1st April 1935. The Reserve Bank Staff college was set up by RBI  for training their existing staff with specified banking skills. 

The Industrial Finance Corporation of India was set up in _____.

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

  1. 1948

  2. 1964

  3. 1985

  4. 1990

Show answer
Correct Option: A
Explanation:

The IFCI was the first development bank owned by government of India post independence. The main focus  was to cater to the long term financial needs of the industrial sector. 

Indira Gandhi Institute of Development Research was set up by the _________.

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

  1. RBI

  2. NABARD

  3. IBRD

  4. SBI

Show answer
Correct Option: A
Explanation:

Indira Gandhi Institute of Development Research is located in Mumbai. It was established by RBI in 1987 on the occasion of its golden jubilee . It is an advanced research institution.

The bankers training college is located at _________.

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

  1. Mumbai

  2. Chennai

  3. Pune

  4. New Delhi

Show answer
Correct Option: A
Explanation:

The Bankers Training college was set up by RBI to provide better banking and economic knowledge to aspiring bankers. It is located in Mumbai.

The Apex institution with regard to rural credit is __________.

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

  1. Agricultural Refinance and Development Corporation

  2. Regional Rural Banks

  3. Reserve Bank of India

  4. NABARD

Show answer
Correct Option: D
Explanation:

NABARD is an apex development financial institution of India. It was established in 1982 with regards to policy, planning and operations in the field of credit for agriculture and other economic activities in rural parts of India.

NABARD stands for ____________.

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

  1. National Bank for Agricultural and Refinance Development

  2. National Bank for Agricultural and Rural Development

  3. National Board of Agriculture and Rural Development

  4. National Bureau for Agriculture and Rural Development

Show answer
Correct Option: B
Explanation:

National Bank of Agricultural and Rural Development was established in 1982 and has been entrusted with planning, policy and operations in the field of credit for agriculture and other economic activities in rural areas of India.

The Reserve Bank of India was nationalised on __________.

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

  1. January 1, 1947

  2. January 1, 1949

  3. January 1, 1951

  4. January 1, 1955

Show answer
Correct Option: B
Explanation:

The Reserve Bank of India was nationalized on the basis of Reserve Bank of India (Transfer to public ownership)act, 1948. After the nationalization, all shares in the capital of the bank was deemed transferred to the central government on payment of suitable compensation.