New Month End Dhamaka - Flat 55% Off on All Courses

    Question

    How do NBFCs contribute to the economic development of

    the country?
    A By providing only short-term loans to businesses Correct Answer Incorrect Answer
    B By catering only to the financial needs of bank-excluded customers Correct Answer Incorrect Answer
    C By helping in rotation of resources, asset distribution, and regulation of income Correct Answer Incorrect Answer
    D By relying heavily on traditional banks for raising capital Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    NBFCs enable the conversion of savings into investments and help in mobilizing funds/resources in the economy. They help in the accumulation of a capital stock for the country, which adds to the national income and results in the progression of GDP. They also play an important role in promoting inclusive growth by catering to the diverse financial needs of bank-excluded customers.

    Practice Next

    Relevant for Exams: