New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    With regards to Development finance which of the

    following is correct: 1.Development finance is effort of only public sector   2.Development finance is a combined effort of public and private sector but mostly initiated by the public sector. 3.Development finance is effort ofonly private sector. 4.DFIs provide andsupport economic development through various direct and indirectfinancing programs.
    A 2 & 4 Correct Answer Incorrect Answer
    B 1 & 4 Correct Answer Incorrect Answer
    C 3 & 4 Correct Answer Incorrect Answer
    D 1 & 3 Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Development Finance Institutions (DFIs) are specialized financial institutions that provide and support economic development through a range of direct and indirect financing programs. Development finance is a combined effort of the public and private sector, but the public sector often plays a more significant role in initiating and leading development finance activities. The public sector, which includes governments and international organizations, often provides the initial funding and support for development finance institutions (DFIs) and development projects. However, private sector involvement in development finance is also critical. Private sector financing, including commercial loans, equity investments, and other financial instruments, can help to mobilize capital and drive sustainable economic growth

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