Tag: long term sources of finance

Questions Related to long term sources of finance

The first development bank was ___________________.

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

  1. The Industrial Development Bank of Canada

  2. The Industrial Development Bank of U.S.A.

  3. The Industrial Development Bank of England

  4. The Industrial Development Bank of Japan

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Correct Option: D

The first development bank in India was the ______.

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

  1. IFCI

  2. IDBI

  3. UTI

  4. SIDBI

Show answer
Correct Option: A
Explanation:

IFCI (industrial financial corporation of india) was first development bank of india in 1948

Which of the following refers to E-banking?

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

  1. Educational banking

  2. Environment banking

  3. Export-Import bank

  4. Electronic banking

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Correct Option: D
Explanation:

Electronic banking is also known as Online banking, virtual banking. E banking refers to electronic payment system that enables a customer to conduct certain banking activities and transaction through internet via a the financial institute's website.

The Risk Capital foundation is operated by the ________.

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

  1. UTI

  2. IDBI

  3. IFCI

  4. SFCs

Show answer
Correct Option: C
Explanation:

Risk Capital refers to the funds used for high-risk investments. Risk Capital foundation was set up by IFCI in 1975  with a view to encourage entrepreneurship and increase entrepreneurial base by providing start up capital for setting up green field projects.  

IDBI has set up the IDBI bank Ltd. since ______.

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

  1. 1975

  2. 1982

  3. 1990

  4. 1964

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Correct Option: D
Explanation:

IDBI stands for Industrial Development Bank of India. It constituted under the under the Industrial Development Bank of India Act, 1964. 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. 

The Industrial Finance Corporation of India 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, 1942

  2. July, 1948

  3. July, 1952

  4. July, 1982

Show answer
Correct Option: B
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.

The primary objective of the IDBI was to act as a ______.

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

  1. financier

  2. coordinator

  3. promoter

  4. all of the above

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Correct Option: B
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.

The IFCI is converted into a Public Limited Company with effect from_____________.

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

  1. July 1985

  2. July 1996

  3. July 1993

  4. July 2001

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Correct Option: C

The IDBI extends financial assistance to _________.

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

  1. small industries

  2. medium industries

  3. transporters

  4. all of the above

Show answer
Correct Option: D
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.

The first term-lending Institution In India was ________.

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. LIC

  4. UTI

Show answer
Correct Option: B
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.