Class 12 Finance Important Chapter 5 Development Financial Institutions

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

Class 12 Finance Important Chapter 5 Development Financial Institutions

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 Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.

Development Financial Institutions

Chapter: 5

IMPORTANT QUESTION AND ANSWER

Short Question and Answer:

1. What is IFCI and when was it established?

Ans: IFCI (Industrial Finance Corporation of India) is the first development bank in India, established on July 1, 1948, under the Industrial Finance Corporation Act, 1948, to provide financial assistance to medium and large-scale industries.

2. What are the objectives of IFCI?

Ans: The objectives of IFCI include providing long and medium-term credit to industrial concerns, assisting in setting up new projects, granting credit, guaranteeing loans, and supporting cooperative and backward area projects.

3.What are the functions of IFCI?

Ans: IFCI provides financial assistance through loans, underwriting, and direct subscriptions to shares. It also guarantees loans, undertakes promotional activities, and offers financial services like corporate counseling and revival of sick units.

4. When was NABARD established and what is its purpose?

Ans: NABARD (National Bank for Agriculture and Rural Development) was established on July 12, 1982, to promote rural development and provide credit for agriculture, small industries, and rural crafts.

5. What is the role of State Financial Corporations (SFCs)?

Ans: SFCs provide financial assistance to micro, small, and medium-scale industries, offering loans, guarantees, and underwriting of securities, with a special focus on the development of backward areas and employment generation.

6. What is the main function of SIDCs?

Ans: SIDCs (State Industrial Development Corporations) stimulate industrial growth, provide loans, build industrial infrastructure, and promote entrepreneurship and skill development to foster regional industrialization.

7. How does IFCI support small and medium enterprises?

Ans: IFCI assists small and medium enterprises by providing financial support, guidance in setting up new projects, and helping with modernization and expansion, thereby promoting industrial growth and reducing regional disparities.

8. What is the role of NABARD in rural credit?

Ans: NABARD plays a pivotal role in regulating and promoting rural credit by offering refinance facilities to cooperative banks, financing small industries, and improving the credit distribution system for rural development.

9. What are the objectives of NABARD?

Ans: NABARD aims to direct rural development by offering investment credit, improving credit distribution, providing refinance to rural banks, and coordinating development activities between government agencies and rural institutions.

10. How do SIDCs contribute to industrial development?

Ans: SIDCs contribute by providing financial assistance to medium and large industries, developing industrial parks, promoting entrepreneurship, and offering infrastructure support, including marketing assistance for small-scale industries.

Fill in the Blanks:

1. IFCI was established in _______ to provide financial assistance to medium and large-scale industries.

Ans: 1948.

2. The primary objective of IFCI is to provide _______ and medium-term credit to industrial concerns.

Ans: Long-term.

3. NABARD was established on _______ to promote rural development in India.

Ans: July 12, 1982.

4. State Financial Corporations (SFCs) provide financial assistance to _______ industries in India.

Ans: Small and medium-scale.

5. SIDCs were established under the _______ Act, 1956.

Ans: Companies.