Tag: long term sources of finance

Questions Related to long term sources of finance

The IDBI extends financial assistance in an indirect manner through _______.

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

  1. state finance corporations

  2. state industrial development corporations

  3. commercial banks

  4. all of the above

Show answer
Correct Option: D
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. 

The Industrial Development Bank of India was delinked from the RBI with effect from _______.

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

  1. February 16, 1969

  2. February 16, 1972

  3. February 16, 1976

  4. February 16, 1982

Show answer
Correct Option: C
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.

The soft loan scheme is provided by _______.

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

  1. RBI

  2. IFCI

  3. ICICI

  4. UTI

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Correct Option: D

What are SFCs? 

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

  1. The regional level development banks

  2. The district level development banks

  3. State financial corporations

  4. Rural development banks

Show answer
Correct Option: C
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.

The IFCI has helped in industrial development through __________.

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

  1. financial assistance

  2. promotional assistance

  3. diversification of industries in backward areas

  4. all the above

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Correct Option: D

The Risk Capital and Technology Finance Corporation was sponsored by ________.

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

  1. IRBI

  2. SIDBI

  3. IDBI

  4. IFCI

Show answer
Correct Option: D
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. 

The I.F.C.I. performs the dual functions of a _____________.

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

  1. financier and promoter

  2. financier and coordinator

  3. co-ordinator and promoter

  4. financier and agent

Show answer
Correct Option: A
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.

The IFCI sponsored the Risk capital and Technology Finance Corporation in ________.

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

  1. 1968

  2. 1978

  3. 1988

  4. 1998

Show answer
Correct Option: C
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. 

The State Financial Corporation Act was passed in __________.

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

  1. September 1951

  2. May 1955

  3. June 1960

  4. July 1965

Show answer
Correct Option: A
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.

The IFCI has set up ________.

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

  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

Show answer
Correct Option: D
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