{"id":33654,"date":"2024-04-15T09:19:51","date_gmt":"2024-04-15T09:19:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33654"},"modified":"2024-04-15T09:19:51","modified_gmt":"2024-04-15T09:19:51","slug":"development-financial-institutions-are-usually-helped-by-government-and-regulatory-bodies-which-of-the-following-instrument-s-provided-support-funding-support-to-them-specifically-during-initial-per","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/development-financial-institutions-are-usually-helped-by-government-and-regulatory-bodies-which-of-the-following-instrument-s-provided-support-funding-support-to-them-specifically-during-initial-per\/","title":{"rendered":"Development Financial Institutions are usually helped by government and regulatory bodies. Which of the following instrument\/s provided support funding support to them, specifically during initial periods?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a985b30db10f\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Lines of credit from RBI                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Statutory Liquidity Ratio bonds                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Both A and B                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. Both A and B<\/strong><\/p>\n<p>Development Financial Institutions (DFIs) are financial institutions that provide long-term loans and other financial assistance to businesses and other organizations. DFIs are usually helped by government and regulatory bodies, which provide them with funding support.<\/p>\n<p>One of the ways in which government and regulatory bodies provide funding support to DFIs is through lines of credit from the Reserve Bank of India (RBI). Lines of credit are loans that are available to DFIs on a short-term basis, and they can be used to meet the liquidity needs of DFIs.<\/p>\n<p>Another way in which government and regulatory bodies <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> provide funding support to DFIs is through Statutory Liquidity Ratio (SLR) bonds. SLR bonds are bonds that are issued by the RBI, and they are required to be held by banks and other financial institutions. The proceeds from the sale of SLR bonds are used by the RBI to provide funding support to DFIs.<\/p>\n<p>Both lines of credit from the RBI and SLR bonds are important sources of funding support for DFIs. These instruments help DFIs to meet their liquidity needs and to provide long-term loans to businesses and other organizations.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li><strong>A. Lines of credit from RBI<\/strong><\/li>\n<\/ul>\n<p>Lines of credit are loans that are available to DFIs on a short-term basis. They can be used to meet the liquidity needs of DFIs.<\/p>\n<ul>\n<li><strong>B. Statutory Liquidity <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> Ratio bonds<\/strong><\/li>\n<\/ul>\n<p>SLR bonds are bonds that are issued by the RBI. They are required to be held by banks and other financial institutions. The proceeds from the sale of SLR bonds are used by the RBI to provide funding support to DFIs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Development Financial Institutions are usually helped by government and regulatory bodies. 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