[amp_mcq option1=”1, 2 and 3 only” option2=”2, 3 and 4 only” option3=”1, 3 and 4 only” option4=”1, 2 and 4 only” correct=”option1″]
The correct answer is: A. 1, 2 and 3 only
Non-banking financial companies (NBFCs) are financial institutions that do not have a banking license. They provide a variety of financial services, including loans, investments, and insurance. NBFCs are regulated by the Reserve Bank of India (RBI).
There are many different types of NBFCs, but they can be broadly classified into four categories:
- Asset finance companies (AFCs) provide loans to businesses to purchase assets, such as equipment or vehicles.
- Investment companies (ICs) raise money from investors and invest it in a variety of assets, such as stocks, bonds, and real estate.
- Loan companies provide loans to individuals and businesses.
- Foreign trade companies (FTCs) facilitate international trade by providing services such as letters of credit and export financing.
The four options given in the question are all types of NBFCs. Option 1, Asset Finance Company (AFC), is a type of NBFC that provides loans to businesses to purchase assets, such as equipment or vehicles. Option 2, Investment Company (IC), is a type of NBFC that raises money from investors and invests it in a variety of assets, such as stocks, bonds, and real estate. Option 3, Loan Company, is a type of NBFC that provides loans to individuals and businesses. Option 4, Foreign Trade Company (FTC), is a type of NBFC that facilitates international trade by providing services such as letters of credit and export financing.
Therefore, the correct answer is A. 1, 2 and 3 only.