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Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform:
- It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs.
- Only MSMEs can participate as sellers in the TreDS platform.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding the Trade Receivables Disc...
Explanation:
The Trade Receivables Discounting System (TReDS) is an electronic platform that facilitates the financing and discounting of trade receivables. It is primarily aimed at addressing the working capital needs of Micro, Small, and Medium Enterprises (MSMEs) by providing them with timely access to funds against their trade receivables.
Statement 1: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs.
This statement is correct. The TReDS platform provides a digital marketplace where MSMEs can upload their trade receivables and receive financing against them. The platform connects MSMEs with financiers, such as banks and financial institutions, who are willing to provide funds against these receivables. By discounting their trade receivables, MSMEs can receive funds upfront and enhance their liquidity.
Statement 2: Only MSMEs can participate as sellers in the TReDS platform.
This statement is also correct. The TReDS platform is specifically designed to cater to the financing needs of MSMEs. It provides them with a dedicated space to sell their trade receivables and access working capital. Large corporates and government departments can participate as buyers on the platform, but only MSMEs can be sellers.
Therefore, both statements 1 and 2 are correct.
To summarize:
- The TReDS platform is an electronic platform that facilitates the financing and discounting of trade receivables.
- It primarily caters to the needs of MSMEs by providing them with timely access to funds against their trade receivables.
- Only MSMEs can participate as sellers on the TReDS platform, while large corporates and government departments can participate as buyers.
The Trade Receivables Discounting System (TReDS) is an electronic platform that facilitates the financing and discounting of trade receivables. It is primarily aimed at addressing the working capital needs of Micro, Small, and Medium Enterprises (MSMEs) by providing them with timely access to funds against their trade receivables.
Statement 1: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs.
This statement is correct. The TReDS platform provides a digital marketplace where MSMEs can upload their trade receivables and receive financing against them. The platform connects MSMEs with financiers, such as banks and financial institutions, who are willing to provide funds against these receivables. By discounting their trade receivables, MSMEs can receive funds upfront and enhance their liquidity.
Statement 2: Only MSMEs can participate as sellers in the TReDS platform.
This statement is also correct. The TReDS platform is specifically designed to cater to the financing needs of MSMEs. It provides them with a dedicated space to sell their trade receivables and access working capital. Large corporates and government departments can participate as buyers on the platform, but only MSMEs can be sellers.
Therefore, both statements 1 and 2 are correct.
To summarize:
- The TReDS platform is an electronic platform that facilitates the financing and discounting of trade receivables.
- It primarily caters to the needs of MSMEs by providing them with timely access to funds against their trade receivables.
- Only MSMEs can participate as sellers on the TReDS platform, while large corporates and government departments can participate as buyers.
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Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs. Only MSMEs can participate as sellers in the TreDS platform.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs. Only MSMEs can participate as sellers in the TreDS platform.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs. Only MSMEs can participate as sellers in the TreDS platform.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform: It is an electronic platform for facilitating the financing/discounting of trade receivables of MSMEs. Only MSMEs can participate as sellers in the TreDS platform.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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