Class 12 Finance Chapter 5 Development Financial Institution

Class 12 Finance Chapter 5 Development Financial Institution Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Chapter 5 Development Financial Institution Solutions in English and select need one. AHSEC Class 12 Finance Solutions Download PDF. HS 2nd Year Finance Textual Solutions.

Class 12 Finance Chapter 5 Development Financial Institution

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Textual Solutions English Medium for All Chapters, You can practice these here.

Development Financial Institution

Chapter: 5

Unit – 1: FINANCIAL INSTITUTIONS

A. Very Short Questions Answer:

1. In which year was the Industrial Finance Corporation of India established?

Ans: The Industrial Finance Corporation of India (IFCI) was established in 1948.

2. In which year was the NABARD established?

Ans: The National Bank for Agriculture and Rural Development (NABARD) was established in 1982.

3. Write the full form of NABARD.

Ans: National Bank for Agriculture and Rural Development.

4. Write the full form of SFCs.

Ans: State Financial Corporations.

5. Write the full form of SIDCs.

Ans: State Industrial Development Corporations.

B. Short Answer Questions.

1. State two objectives of the establishment of the Industrial Finance Corporation of India Ltd.

Ans: There are two objectives of the establishment of the Industrial Finance Corporation of India Ltd:

(i) To provide medium-term and long-term finance to industries.

(ii) To promote the growth and development of industrial enterprises.

2. State two objectives of the establishment of the SFCs.

Ans: There are two objectives of the establishment of the State Financial Corporations (SFCs):

(i) To provide financial assistance to small and medium-scale industries.

(ii) To promote balanced industrial development in the states.

3. State two objectives of the establishment of SIDCs.

Ans: There are two objectives of the establishment of the State Industrial Development Corporations (SIDCs):

(i) To promote industrial development in different states.

(ii) To provide financial and infrastructural support to industrial projects.

4. State two objectives of the establishment of NABARD.

Ans: There are two objectives of the establishment of NABARD:

(i) To promote agricultural and rural development.

(ii) To provide refinance facilities to banks engaged in rural credit.

5. Write two functions of the IFCI.

Ans: There are two functions of the Industrial Finance Corporation of India (IFCI):

(i) To provide medium-term and long-term loans to industrial enterprises.

(ii) To underwrite and subscribe to the shares and debentures of industrial concerns.

6. Write two functions of the SFCs.

Ans: There are two functions of the State Financial Corporations (SFCs):

(i) To provide loans to small and medium-scale industries.

(ii) To guarantee loans and underwrite securities of industrial concerns.

7. Write two functions of the SIDCs.

Ans: There are two functions of the State Industrial Development Corporations (SIDCs):

(i) To provide financial assistance to industrial projects.

(ii) To promote and develop industries in the respective states.

8. Write two functions of the NABARD.

Ans: There are two functions of NABARD:

(i) To provide refinance facilities to banks for agricultural and rural development.

(ii) To promote agriculture, rural industries, and rural development.

C. Long Answer Questions (Type-I): 

1. State the objectives of the establishment of the Industrial Finance Corporation of India Ltd.

Ans: The objectives of the establishment of the Industrial Finance Corporation of India (IFCI) are:

(i) To provide medium-term and long-term finance to industries.

(ii) To promote the growth and development of industrial enterprises.

(iii) To assist new and existing industrial units.

(iv) To encourage balanced industrial development.

(v) To support industries by subscribing to shares and debentures.

2. State the objectives of the establishment of the SFCs.

Ans: The objectives of the establishment of the State Financial Corporations (SFCs) are:

(i) To provide financial assistance to small and medium-scale industries.

(ii) To promote industrial development in the states.

(iii) To encourage entrepreneurship.

(iv) To provide loans and guarantees to industrial concerns.

(v) To reduce regional industrial imbalance.

3. State the objectives of the establishment of SIDCs.

Ans: The objectives of the establishment of the State Industrial Development Corporations (SIDCs) are:

(i) To promote industrial development in the states.

(ii) To provide financial assistance to industrial projects.

(iii) To develop industrial infrastructure.

(iv) To encourage new entrepreneurs.

(v) To generate employment opportunities.

4. State the objectives of the establishment of NABARD.

Ans: The objectives of the establishment of NABARD are:

(i) To promote agricultural and rural development.

(ii) To provide refinance facilities to banks.

(iii) To strengthen the rural credit system.

(iv) To promote rural industries and cottage industries.

(v) To improve the economic condition of rural people.

5. Write the functions of the IFCI.

Ans: The functions of the Industrial Finance Corporation of India (IFCI) are:

(i) To provide medium-term and long-term loans to industries.

(ii) To underwrite shares and debentures.

(iii) To guarantee loans raised by industrial concerns.

(iv) To subscribe to the share capital of industries.

(v) To assist industrial development.

6. Write the functions of the SFCs.

Ans: The functions of the State Financial Corporations (SFCs) are:

(i) To provide loans to small and medium-scale industries.

(ii) To underwrite shares and debentures.

(iii) To guarantee loans of industrial concerns.

(iv) To assist in the modernization and expansion of industries.

(v) To promote industrial development in the states.

7. Write the functions of the SIDCs.

Ans: The functions of the State Industrial Development Corporations (SIDCs) are:

(i) To promote medium and large industries in the States/Union Territories.

(ii) To promote industrial growth and develop infrastructure.

(iii) To provide financial assistance through loans, guarantees, and underwriting.

(iv) To encourage joint and assisted sector industrial projects.

(v) To conduct industrial surveys, develop industrial estates, and organise entrepreneurship development programmes.

8. Write the functions of the NABARD.

Ans: The functions of NABARD are:

(A) Credit Functions:

(i) To provide refinance facilities to banks.

(ii) To provide medium-term credit.

(iii) To provide long-term credit.

(iv) To provide conversion facilities.

(v) To provide credit to State Governments.

(vi) To provide share capital assistance.

(B) Regulatory Functions:

(i) To inspect cooperative societies under the Banking Regulation Act, 1949.

(ii) To collect information and statements from Cooperative Banks and Regional Rural Banks 

(RRBs).

(C) Developmental Functions:

(i) To prepare credit plans and promote research, technology, and innovations.

(ii) To provide training and research facilities.

(iii) To offer counselling and consultancy services.

(iv) To promote integrated rural development.

(v) To support small-scale, cottage, village industries, and rural artisans.

D. Long Answer Questions (Type-II): 

1. State the objectives and the functions of the NABARD.

Ans: (A) Objectives of NABARD:

(i) To promote agricultural and rural development.

(ii) To provide refinance facilities to banks engaged in rural credit.

(iii) To strengthen the rural credit system.

(iv) To promote rural industries and cottage industries.

(v) To improve the economic condition of rural people.

(B) Functions of NABARD:

(i) To provide refinance facilities to cooperative banks, Regional Rural Banks (RRBs), and other financial institutions.

(ii) To promote agriculture, rural industries, and rural development.

(iii) To supervise and inspect cooperative banks and Regional Rural Banks.

(iv) To support rural infrastructure and development projects.

(v) To provide financial assistance for agriculture and allied activities.

(vi) To encourage self-help groups (SHGs) and microfinance programmes.

(vii) To conduct research and training in rural development.

(viii) To promote sustainable and balanced rural economic development.