Tag: long term sources of finance

Questions Related to long term sources of finance

The Banking Ombudsman scheme started from ______.

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

  1. June 1994

  2. June 1995

  3. August 1995

  4. January 1995

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Correct Option: B
Explanation:

Banking Ombudsman scheme was introduced under section 35 A of the Banking Regulation Act, 1949 with effect from 1995. Under Banking Ombudsman scheme, banking ombudsman is appointed by RBi he is a senior official. The official handles and redress customer complaints against deficiency in certain banking services. 

Long-term agricultural credit is provided by ________.

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

  1. Land Development Bank

  2. State Cooperative Bank

  3. Central Cooperative Bank

  4. Commercial Bank

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Correct Option: A
Explanation:

Long term agricultural credits are provided for land improvement, digging of wells, buying farm animals, purchase of machinery. Most of the expenses are relating to agriculture and other allied land development activities. Such long term agricultural credit is provided by Land Development Bank.

The Deposit Insurance Corporation was established in ________.

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

  1. 1961

  2. 1962

  3. 1963

  4. 1964

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Correct Option: B
Explanation:

The government of India enacted The Deposit Insurance Corporation Act in 1961. The whole objective of DIC was to provide necessary protection to the depositors from the risk of losing their deposits  and to inspire public confidence in the banking system.  

An apex institution in the sphere of development banking in India is ______.

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

  1. IDBI

  2. IFCI

  3. NABARD

  4. UTI

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Correct Option: A

IDBI was made an autonomous institution in _______.

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

  1. 1969

  2. 1972

  3. 1976

  4. 1982

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Correct Option: C
Explanation:

IDBI stands for Industrial Development Bank of India. IDBI was established by the parliament to provide credit and there financial facilities to the developing industries of India.IDBi was made an autonomous institution as its ownership passed on from Reserve Bank of India to the government of India.

What does E-banking maintain?

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

  1. Secrecy transaction

  2. Simple transaction

  3. Easy transaction

  4. All of the above

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Correct Option: A
Explanation:

E- banking refers to electronic banking. E- banking functions with the help of internet and the financial institution's website, hence a lot of data regarding one's account number, bank details etc are required to carry out a transaction. High secrecy is maintained by E-banking system to keep the numbers hidden.

The IDBI was established in ______.

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

  1. July, 1948

  2. July, 1949

  3. July, 1964

  4. July, 1965

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Correct Option: C
Explanation:

IDBI stands for Industrial Development Bank of India. 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. 

Off-shore banking becomes more easy by _______.

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

  1. E-banking

  2. EXIM-bank

  3. Rural banking

  4. IMF

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Correct Option: A
Explanation:

Off shore bank refers to the bank located in a jurisdiction away from where the account holder or depositor resides. As E-banking doesn't require the account holder to be physically present in the bank to make the transaction, off-shore banking becomes much easier with the help of E-banking

IFCI was established in _______.

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

  1. 1946

  2. 1948

  3. 1949

  4. 1950

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Correct Option: B
Explanation:

industrial financial corporation of india was established in 1948 by goverment of india

Functions of development banks:
I. They provide risk capital
II. They grant medium and long-term loans
III. They guarantee loans raised from within and outside the country
IV. They provide assistance for setting up new industrial projects
Which of the given options are correct?

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

  1. I and II are correct

  2. I, II and IV are correct

  3. I, II and III are correct

  4. All are correct

Show answer
Correct Option: D