which of the following statement does not justify having more financial institutions ........

Logical Reasoning(CLAT) Statement - Arguments

The existence/establishment of formal financial institutions that offer safe, reliable and alternative financial instruments is fundamental in mobilising savings. To save, individuals need access to safe and reliable financial institutions, such as banks, and to appropriate financial instruments and reasonable financial incentives. Such access is not always available to all people in developing countries like India and more so, in rural areas. Savings help poor households manage volatility in cash flow, smoothen consumption, and build working capital. Poor households without access to a formal savings mechanism encourage immediate spending temptations.

which of the following statement does not justify having more financial institutions.

These institutions carry out a systematic investigation before conceding support to an apprehension, relationship with them helps to increase the credit-worthiness of a company.?

Financial institutions provide long-term finance, which is not provided by commercial banks;?

The rate of interest and repayment measures is convenient and economical. Facilities for repayment in simple instalments are made obtainable to the deserving concerns.

Financial institutions may have their nominees on the Board of Directors of the borrowing company thereby restricting the powers of the company.