Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits
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(4) on the basis of their deposits Explanation: Commercial banks create credit on the basis of their deposits. Credit creation is the multiple expansions of banks demand deposits. Whenever, customer deposits sum of money, a part of that money is kept by the commercial banks with the credit bank of the country which is obligatory by the law. The amount of credit that can be created by the bank will depend on the primary deposits and also on the amounts of minimum legal resource requirement.
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Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Description : Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Last Answer :  on the basis of their deposits

What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above

Description : What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above

Last Answer : c) the fraction of the deposits that commercial banks must keep with RBI

What is the reserve deposit ration (rdr)? a) the proportion of money RBI lends to commercial banks b) the proportion of total deposits commercial banks keep as reserves c) the total proportion of money that commercial banks lend to the customers d) none of the above

Description : What is the reserve deposit ration (rdr)? a) the proportion of money RBI lends to commercial banks b) the proportion of total deposits commercial banks keep as reserves c) the total proportion of money that commercial banks lend to the customers d) none of the above

Last Answer : b) the proportion of total deposits commercial banks keep as reserves

Which of the following is not the function of commercial banks? (a) Issue of paper notes. (b) Credit control. © Acceptance of deposits (d) Advancing loans.

Description : Which of the following is not the function of commercial banks? (a) Issue of paper notes. (b) Credit control. © Acceptance of deposits (d) Advancing loans.

Last Answer : (a) Issue of paper notes.

A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks

Description : A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks

Last Answer : (1) Cash in the vault Explanation: A commercial bank is a profitseeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of ... received as the deposits to needy people. So it creates credit from the cash deposits with it.

A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks

Description : A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks 

Last Answer : Cash in the vault

4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy-making body is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Last Answer : a. it is a system of 12 central banks

Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Description : Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Last Answer : (3) Purchase and sale of Government securities by RBI Explanation: Open Market Operation (OMO) refers to the buying and selling of government securities in the open market in order to expand or ... in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.

The RBI can decrease the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Description : The RBI can decrease the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Last Answer : a) selling government securities

Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Description : Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Last Answer : Purchase and sale of Government securities by RBI

In Bank‟s balance sheet, which of the following is an asset? A. Its paid up capital B. Its saved deposits C. Its instrument in government securities D. Its accumulated Reserve Funds E. Its Current Deposits

Description : In Bank‟s balance sheet, which of the following is an asset? A. Its paid up capital B. Its saved deposits C. Its instrument in government securities D. Its accumulated Reserve Funds E. Its Current Deposits

Last Answer : C. Its instrument in government securities Explanation: Bank assets comprises cash, money at short notice, bills and securities discounted, bank‘s investments in government securities, loans sanctioned by the bank.

Bank Rate refers to the interest rate at which - (1) Commercial banks receive deposits from the public (2) Central bank gives loans to Commercial banks (3) Government loans are floated (4) Commercial banks grant loans to their customers

Description : Bank Rate refers to the interest rate at which - (1) Commercial banks receive deposits from the public (2) Central bank gives loans to Commercial banks (3) Government loans are floated (4) Commercial banks grant loans to their customers

Last Answer : (2) Central bank gives loans to Commercial banks Explanation: Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are very short in duration.

Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Description : Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

Regional Rural Banks arc sponsored by (1) Nationalized Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Description : Regional Rural Banks arc sponsored by (1) Nationalized Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Last Answer : (1) Nationalized Commercial Bank Explanation: The Narasimham committee conceptualized the foundation of regional rural banks in India. Five regional rural banks were set up on October 2. 1975. There ... Bank. United Bank of India and United Commercial Bank, which sponsored the regional rural banks.

Money supply is governed by the - (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Description : Money supply is governed by the - (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Last Answer : (3) Reserve Bank of India Explanation: In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It is governed and ... Reserve Bank of India regulates money supply in India through its several policy rates and reserve ratios.

Money supply is governed by the (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Description : Money supply is governed by the (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Last Answer : Reserve Bank of India

Regional Rural Banks are sponsored by (1) Nationalised Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Description : Regional Rural Banks are sponsored by (1) Nationalised Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Last Answer :  Nationalised Commercial Bank

Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks Association (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Description : Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks ... (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Last Answer : Answer: Reserve Bank of India (RBI)

The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.

The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : sale of stocks and bonds to the public

What is referred to as "Depository Services"? (1) A new scheme of fixed deposits (2) A method of regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Description : What is referred to as "Depository Services"? (1) A new scheme of fixed deposits (2) A method of regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Last Answer : (3) An agency for safekeeping of securities Explanation: A Central Securities Depository (CSD) is an organization holding securities either in certificated or uncertificated (dematerialized ... : Demat accounts; dematerialization; rematerialization; transfer of securities; and pledge services.

Government securities are considered liquid because they are - (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value

Description : Government securities are considered liquid because they are - (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value

Last Answer : (3) quickly and easily marketable Explanation: Liquid Asset is an asset that can be converted into cash quickly and with minimal impact to the price received. In a liquid market, ... free highly liquid financial instruments, which market participants are more willing to transact and take positions.

What is referred to as 'Depository Services'? (1) A new scheme of fixed deposits (2) A method for regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Description : What is referred to as 'Depository Services'? (1) A new scheme of fixed deposits (2) A method for regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Last Answer : (3) An agency for safekeeping of securities Explanation: It is a service offered by a securities depository under which the depository maintains book accounts recording the ownership of securities held on behalf of the depository's participants, for eligible securities.

What is referred to as ‘Depository Services’ ? (1) A new scheme of fixed deposits (2) A method for regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Description : What is referred to as ‘Depository Services’ ? (1) A new scheme of fixed deposits (2) A method for regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Last Answer : An agency for safe-keeping of securities

Government securities are considered liquid because they are (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value

Description : Government securities are considered liquid because they are (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value

Last Answer : quickly and easily marketable 

What is referred to as “Depository Services” ? (1) A new scheme of fixed deposits (2) A method of regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors

Description : What is referred to as “Depository Services” ? (1) A new scheme of fixed deposits (2) A method of regulating stock exchanges (3) An agency for safe-keeping of securities (4) An advisory service to investors 

Last Answer : An agency for safe-keeping of securities

Which of the following is not the function of commercial bank? (a) Acceptance of deposits. (b) Advancing loans. © Issue of paper notes. (d) Credit control.

Description : Which of the following is not the function of commercial bank? (a) Acceptance of deposits. (b) Advancing loans. © Issue of paper notes. (d) Credit control.

Last Answer : © Issue of paper notes.

If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.

9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Last Answer : c. buy Treasury securities in the open market

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer :  lower cash reserve ratio

SMERA has been registered under _______ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. None of these

Description : SMERA has been registered under _______ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. None of these

Last Answer : D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 Explanation: SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

A Credit Bureau is governed by _________ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. Credit Information Companies (Regulation) Act of 2005

Description : A Credit Bureau is governed by _________ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange ... of India (Credit Rating Agencies) Regulations, 1999 E. Credit Information Companies (Regulation) Act of 2005

Last Answer : E. Credit Information Companies (Regulation) Act of 2005 Explanation: A Credit Bureau is governed by the Credit Information Companies (Regulation) Act of 2005.

Which one of the following statements is false ? (A) The Open Market Operations involve the sale or purchase of govt. securities by the Central Bank (B) The RBI manages longterm liquidity through rapos (C) The RBI manages longterm liquidity through Open Market Operations (D) Open Market Operations do not alter the total stock of govt. securities but change the proportion of govt. securities held by the RBI, Commercial Banks and Co-operative Banks

Description : Which one of the following statements is false ? (A) The Open Market Operations involve the sale or purchase of govt. securities by the Central Bank (B) The RBI manages longterm liquidity through ... change the proportion of govt. securities held by the RBI, Commercial Banks and Co-operative Banks

Last Answer : Answer: The RBI manages longterm liquidity through rapos

Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.

Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer :  Reduction of consumption consequent to a rise in prices

Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : (3) income of an economy grows on account of an initial investment Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in ... of the U.S. money supply, and MO as a measure of the U.S. monetary base.

Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : income of an economy grows on account of an initial investment 

The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Description : The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Last Answer : Justify the following statement: The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

What is "narrow money"? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with the public and the cash reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters

Description : What is "narrow money"? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with the ... reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters

Last Answer : (1) The sum of currency in circulation and the demand deposits in banks Explanation: The four main monetary aggregates of measures of money supply which reflect the state of the monetary sector ... This category of money is considered to be the most readily available for transactions and commerce.

Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) Currency with the public is more than the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

Description : Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) ... the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

Last Answer : (2) Currency with the public is less than the deposits with the banks. Explanation: Money supply in India includes the following: (i) Currency with the public: (ii) Demand deposits and time ... to total supply of money has been increasing with reciprocal diminution in currency held by the public.

What is “narrow money” ? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with the public and the cash reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters

Description : What is narrow money ? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with ... reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters

Last Answer : The sum of currency in circulation and the demand deposits in banks

Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) Currency with the public is more than the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

Description : Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) ... the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

Last Answer : Currency with the public is less than the deposits with the banks. 

What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

Description : What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

Last Answer : D. All of the Above Explanation: HFCs are doing functions similar to banks as banks also provides housing loans. However, there are a few differences as given below: ♦ HFCs cannot accept demand ... Credit Guarantee Corporation(DICGC) is not available to depositors of HFCs, unlike in case of banks.

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description : The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : (1) greater Explanation: Cash Reserve Ratio is a regulation set by Central bank (RBI in India) which dictates the minimum amount (reserves) (hata commercial bank must be held to customer notes and deposits ... banks to hold a lesser proportion of (heir deposits in the form of deposits with the RBI.

The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Description : The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Last Answer : (2) Cash Reserve Ratio Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description :  The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : greater

The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Description : The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Last Answer : Cash Reserve Ratio

Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Last Answer : (2) Portfolio Investment Explanation: Portfolio Investments are considered unsafe. These are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as ... which allows an investor to exercise a certain degree of managerial control over a company.

Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing 

Last Answer : Portfolio Investment

How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs? A. Maintain a low level of current assets (especially cash and marketable securities). B. Shorten the maturity schedule of financing. C. Increasing the level of fixed assets (especially plant and equipmentD. Lengthening the maturity schedule of financing

Description : How can a firm provide a margin of safety if it cannot borrow on short notice to meet its  needs? A. Maintain a low level of current assets (especially cash and marketable securities) ... the level of fixed assets (especially plant and equipment D. Lengthening the maturity schedule of financing

Last Answer : D. Lengthening the maturity schedule of financing