Tag: institutional sources

Questions Related to institutional sources

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

Which of the following are included under representation functions of a bank?
i) Payment of cheques and bills
ii) Providing remittance facilities
iii) Underwriting of securities 
iv) Advancing clean credit
v) Allowing overdrafts on current account
vi) Purchase and sale of securities

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

  1. (i), (ii), (iii) and (iv)

  2. (iii), (iv), (v) and (vi)

  3. (vi), (v), (iv), (ii) and (i)

  4. (ii), (iii), (v) and (vi)

Show answer
Correct Option: C
Explanation:
 Banks perform certain secondary functions for the customers. These functions are also known as representation functions of a bank. Following points are included under representation functions of a bank:i) Payment of cheques and billsii) Providing remittance facilitiesiv) Advancing clean credit
v) Allowing overdrafts on current account
vi) Purchase and sale of securities.

Which among the following is not true with regard to merchant banker?
i.It can accept deposits.
ii.It can advance loans.
iii.It can do other banking activities.
iv.It can be manager to a public issue.

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

  1. (i), (ii) and (iii)

  2. (ii), (iii) and (iv)

  3. (i), (iii) and (iv)

  4. (ii) and (iv)

Show answer
Correct Option: A
Explanation:
A merchant banker deals with international finance, business loans for companies and underwriting. Following points are not true with regard to merchant banker:i.It can accept deposits.
ii.It can advance loans.
iii.It can do other banking activities.

Which one of the following banks currently ranks number one in India in terms of market capitalization?

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

  1. State Bank of India

  2. I.C.I.C.I. Bank

  3. U.T.I..Bank

  4. I.D.B.I. Bank

Show answer
Correct Option: A
Explanation:

 State Bank of India currently ranks number one in India in terms of market capitalization. SBI is a public sector banking company. SBI headquatered in Mumbai, Maharashtra.

SIDBI was set up as a subsidiary of IDBI to _______.

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

  1. Take over the function of small business financing of IDBI

  2. Take over the venture capital operation of ICICI

  3. Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI

  4. Facilitate finance and promote India's Foreign trade

Show answer
Correct Option: A
Explanation:

SIDBI was set up as a subsidiary of IDBI to take over the of function of small business financing of IDBI. It is set up for managing the small, micro and medium enterprises of the economy. It is set up by a special Parliamentary Act of India.

__________ is responsible for revival of public sector enterprises.

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

  1. NTPC

  2. BIFR

  3. BRPSE

  4. MNC

Show answer
Correct Option: B
Explanation:

The government of India, in order to solve the problems of industrial sickness had set up a Board of Industrial and Financial Reconstruction under the purview of sick industrial companies act, 1985. Hence, BIFR is responsible for the revival of Public Sector Enterprises.