EXIM bank is a ______________.
|A. State-level institution.|
B. Regional – level institution.
C. All India institution.
D. International institution.
The Correct Answer Is:
- C. All India institution.
EXIM Bank, short for Export-Import Bank of India, is correctly described as an “All India institution,” making option C the correct answer. EXIM Bank plays a pivotal role in facilitating international trade, export, and import activities in India.
To understand why this option is accurate, it’s essential to delve into the bank’s functions and roles. Additionally, we’ll explain why the other options (A, B, and D) are not suitable descriptions for EXIM Bank.
C. All India Institution (Correct Answer):
EXIM Bank of India is a specialized financial institution that operates on a national level. Its primary mandate is to support and promote India’s international trade.
EXIM Bank offers a wide range of financial services and solutions to Indian exporters and importers to enhance their competitiveness in the global market. These services include export finance, import finance, trade advisory, export credit insurance, and more.
The term “All India institution” accurately reflects that EXIM Bank serves the entire nation of India and not just a specific state, region, or international entity. It acts as a catalyst for the country’s international trade and economic growth by providing funding, guidance, and assistance to businesses involved in cross-border trade.
In addition to facilitating trade, EXIM Bank also participates in various global initiatives and collaborations to strengthen India’s position in the international market.
Now, let’s explore why the other options are not accurate:
A. State-Level Institution (Incorrect):
A state-level institution typically refers to organizations or bodies that operate within the jurisdiction of a specific Indian state. EXIM Bank’s scope and operations are not limited to a single state; it operates at a national level, assisting businesses and trade activities across India.
While there may be state-level financial institutions, EXIM Bank serves the entire country and is not confined to one state, making option A incorrect.
B. Regional-Level Institution (Incorrect):
A regional-level institution typically operates within a specific region or area, such as a particular state or group of states. EXIM Bank’s role, however, extends beyond regional boundaries. It serves businesses and trade activities across the entire country, making it a national institution. Its functions and services are not limited to a specific region or group of states, so option B is not an accurate description.
D. International Institution (Incorrect):
While EXIM Bank of India deals with international trade and finance, it is not classified as an international institution. International institutions are typically entities that span multiple countries or regions and are formed through international agreements or treaties. EXIM Bank is an Indian financial institution primarily focused on serving the needs of Indian exporters and importers in the global market.
Its operations are rooted in India, and its primary mission is to promote and support international trade for the benefit of Indian businesses. Therefore, it is not considered an international institution, and option D is not a suitable description.
In summary, EXIM Bank, or the Export-Import Bank of India, is correctly described as an “All India institution” because it operates on a national level and serves the entire country by facilitating and promoting international trade.
It plays a critical role in supporting Indian businesses engaged in export and import activities, making it a vital component of India’s trade and economic landscape.
The other options (A, B, and D) are not accurate descriptions of EXIM Bank’s scope and role, as they either limit its reach to a specific state, region, or international status, which does not align with the bank’s actual functions and responsibilities.