Q.Development financial institutions were established to ______.

Money market : Short-term funds :: Capital market : Long-term funds.

The Indian financial market is divided by the duration of the funds it handles:

• The money market deals in short-term funds, normally for periods up to one year, through instruments like treasury bills, call money and commercial paper. …

The correct answer is to develop industry, agriculture and other key sectors.

Development Financial Institutions (DFIs) — such as IDBI, IFCI, ICICI, NABARD and SIDBI — were established mainly to provide long-term finance and promotional support for the growth of industry, agriculture, small-scale units and other priority sectors that ordinary commercial banks (which mostly lend short-term) could not adequately serve. Regulating the mo …

The odd word out is Land. Bonds, government securities and derivatives are financial assets (claims on money/value); land is a tangible real asset. Odd one: Land.

Why: Assets are broadly of two kinds:

• Financial assets — paper or electronic claims that represent a right to money or income, such as bonds, government securities, shares and derivatives. They can be bought and sold in financial markets. …