Development Banks Overview
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary concern of development banks?

  • Providing short-term capital to industry
  • Offering daily financial services to businesses
  • Investing in non-viable business ventures
  • Assisting in the development of viable businesses (correct)
  • How are Development Finance Corporations (DFCs) referred to?

  • Commercial banks
  • Insurance providers
  • Specialized credit agencies (correct)
  • Investment companies
  • What role did development banks play in the industrialization process of Continental Europe and Japan?

  • Playing a crucial role in rapid industrialization (correct)
  • Focusing on the agricultural sector
  • Offering grants to new startup businesses
  • Providing short-term loans to established businesses
  • How did government support development banks in terms of financial assistance?

    <p>Giving share capital provision</p> Signup and view all the answers

    Which term is NOT commonly used to describe Development Finance Corporations (DFCs)?

    <p>Real estate companies</p> Signup and view all the answers

    In which type of economies do Development Finance Corporations (DFCs) hold a significant place?

    <p>Commonwealth Caribbean economies</p> Signup and view all the answers

    Why do development finance companies have their senior management appointed by the political directorate?

    <p>To fulfill statutory defined goals and objectives</p> Signup and view all the answers

    What is one reason private financial institutions fail to adequately finance high-risk new ventures?

    <p>Unwillingness to bear long-term risks</p> Signup and view all the answers

    Why is using 'social cost-benefit' criteria important in credit allocation decisions?

    <p>To assess externalities and internal performance</p> Signup and view all the answers

    What makes financial flows to development projects more risky compared to established enterprises?

    <p>Less stable cash flows</p> Signup and view all the answers

    How do commercial banks differ from development banks in providing long-term finance?

    <p>Commercial banks lack specialized skills</p> Signup and view all the answers

    Why do financial rate of return criteria sometimes conflict with social cost-benefit criteria in financing decisions?

    <p>Conflict arises from different perspectives on project evaluation</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser