Tag: long term sources of finance

Questions Related to long term sources of finance

Installment credit scheme is introduced by ________.

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. UTI

  4. SIDBI

Show answer
Correct Option: B
Explanation:

Installment Credit Scheme was introduced by IFCI. Under this scheme, better flexibility in repayment period and simplicity in interest calculation is provided. To avail this scheme, the company should have satisfactory track record of its credit worthiness and financial position.

The IFCI granted credit assistance to __________.

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

  1. public limited companies

  2. co-operatives engaged in manufacturing, mining and generation and distribution of electricity

  3. small and medium industries

  4. both (A) and (B)

Show answer
Correct Option: B
Explanation:
  • First, the main function of the IFCI is to provide medium and long-term loans and advances to industrial and manufacturing concerns. It looks into a few factors before granting any loans. They study the importance of the industry in our national economy, the overall cost of the project, and finally the quality of the product and the management of the company. If the above factors have satisfactory results the IFCI will grant the loan.

The UTI started its operation 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, 1964

  2. February, 1969

  3. March, 1970

  4. March, 1975

Show answer
Correct Option: A
Explanation:

The UTI started its operation with effect from July, 1964. The Unit Trust was set up under the Unit Trust of India Act  1963.It was set up by the Reserve Bank of India. It largely deals with the mutual funds.

The SFCs are granted credit assistance to ___________.

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

  1. large public limited companies

  2. cooperatives

  3. small and medium sized industries

  4. all of the above

Show answer
Correct Option: C
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.

What is SEBI?

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

  1. Regulatory Authority

  2. Statutory Authority

  3. Both A and B

  4. None of these

Show answer
Correct Option: A
Explanation:

SEBI stands for Securities and Exchange Board of India. It is an regulatory authority. It was established in 1988.

The SFCs can sanction loans and advances to industrial concerns for a period of________________.

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

  1. 25 years

  2. 30 years

  3. 10 years

  4. not exceeding 20 years

Show answer
Correct Option: D
Explanation:

The SFCs can sanction loans and advances to industrial concerns for a period of not exceeding 20 years. SFC stands for Securities Future Commission. It deals with securities.

The main objective of the UTI is ________.

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

  1. to mobilise the savings of the middle income groups

  2. to mobilise the savings of lower-middle income groups

  3. to investment them in the equity capital of joint stock companies

  4. all the above

Show answer
Correct Option: D
Explanation:
The Unit Trust was set up under the Unit Trust of India Act  1963.It was set up by the Reserve Bank of India. It largely deals with the mutual funds.The main objectives of the UTI are:1) to mobilize the savings of the middle income groups
2) to mobilize the savings of the middle income groups
3) to investment them in the equity capital of joint stock companies

The Unit Trust was set up under the Unit Trust of India Act _________.

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

Show answer
Correct Option: C
Explanation:

The Unit Trust was set up under the Unit Trust of India Act  1963.It was set up by the Reserve Bank of India. It largely deals with the mutual funds.

Match the following:

a) Unit Trust of India i) $1921$
b) Banking Regulation Act ii) $1949$
c) Imperial Bank of India iii) $1964$
d) NABARD iv) $1982$
organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. (a)-(i), (b)-(iii), (c)-(ii), (d)-(iv)

  2. (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)

  3. (a)-(ii), (b)-(iv), (c)-(iii), (d)-(i)

  4. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv)

Show answer
Correct Option: D
Explanation:

|  a) Unit Trust of India |  1964 | | --- | --- | |  b) Banking Regulation Act |  1949 | | b) Banking Regulation Act | | |  c) Imperial Bank of India |  1921 | |  d) NABARD |  1982 |

Match the items of List-I with List-II. Identify the correct combination.

List-I List-II
a) RBI Nationalization i) $1964$
b) Imperial Bank Nationalization ii) $1949$
c) Nationalization of $14$ Commercial Banks iii) $1955$
d) Establishment of IDBI iv) $1969$
organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

  2. (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)

  3. (a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)

  4. (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

Show answer
Correct Option: D
Explanation:
 List-I  List-II
 a) RBI Nationalization  1949
 b) Imperial Bank Nationalization  1955
 Nc) Nationalization of 14 commercial banks  1969
c) Nationalization of 14 commercial banks
 d) Established of IDBI  1964