Economics · Financial Intermediaries
A refinance institution differs from a direct lender because it may support the financial system by providing funds to eligible intermediaries rather than lending to end-users in every case. Refinance is primarily intended to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1transfer all credit risk to the sovereign
- 2eliminate credit appraisal at the primary lending stage
- 3improve the lending capacity of intermediary institutions in priority or targeted sectors✓
- 4substitute taxation as a source of government finance
Correct answer
improve the lending capacity of intermediary institutions in priority or targeted sectors
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Intermediaries MCQs →Want more practice questions on Financial Intermediaries?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Financial Intermediaries