[amp_mcq option1=”Merchant bank” option2=”Financial intermediaries” option3=”Development financial institutions” option4=”Serial capital firms” correct=”option3″]
The correct answer is: C. Development financial institutions.
Development financial institutions (DFIs) are financial institutions that provide loans, equity, and other financial assistance to businesses and other organizations that are working to promote economic development. DFIs typically have a mandate to support projects that are in line with their country’s development goals, such as reducing poverty, creating jobs, or improving infrastructure.
IDBI and ICICI are two of the largest DFIs in India. IDBI was established in 1964 by the Government of India to provide financial assistance to industrial projects. ICICI was established in 1955 by a group of Indian industrialists to provide financial assistance to small and medium-sized enterprises. Both IDBI and ICICI have played a significant role in India’s economic development.
Merchant banks are financial institutions that provide a range of services to businesses, including underwriting, mergers and acquisitions, and asset management. Serial capital firms are private equity firms that invest in companies that are in the early stages of development.
Financial intermediaries are financial institutions that facilitate the flow of money between savers and borrowers. They do this by issuing financial products, such as loans and bonds, and by investing in financial assets, such as stocks and bonds.