Question

A system where banks accept deposits for longer periods and lend them for longer periods is known as

• A. Retail Banking
• B. Investment Banking
• C. Savings Banking
• D. Industrial Banking

Answer 1

Answer:

D. Industrial Banking

Industrial / Investment / Developmental Banking:

• It is a system where banks accept deposit for long period and lend them for longer periods.
• It mainly meets the requirements of medium and long terms financial needs of industrial concerns.
• They give long term funds to industries for acquisition of fixed assets, modernisation, expansion of business and re-organisation of the industry.
• Originated in Germany
• It helps to sell or undertake the debentures and shares of the industrial concerns.
• Underwriting of shares issued by public limited companies
• It provides technical assistance to industries.
• Eg. IFCI, IDBI, ICICI, EXIM, SIDBI, NABARD etc.