Investors seeking to avoid the complexities and time commitment of active portfolio management typically prefer commercial bank deposits. These instruments offer high liquidity, capital preservation, and a predictable, albeit modest, return without requiring the investor to monitor market fluctuations, analyze financial statements, or manage underlying assets. They represent a passive investment strategy suitable for risk-averse individuals.

A term insurance plan is designed as a pure protection product. It provides a death benefit to the nominee if the insured passes away during the policy term. Unlike endowment or whole life policies, term insurance does not accumulate cash value, offer maturity benefits, or provide bonuses, as the entire premium is dedicated to covering the mortality risk.

The proposal form is the primary document used by an applicant to provide necessary personal and risk-related information to the insurer. This document forms the basis of the insurance contract, as the insurer relies on the accuracy of the information provided within it to assess risk and determine premium rates.

A bank overdraft is a credit facility that allows a business to withdraw more money from its bank account than it currently holds, up to an agreed limit. It is a common form of short-term financing used to manage immediate working capital needs, unlike debentures or mortgages which are typically long-term.

Central banks are typically government-controlled. The Export-Import Bank of India assumed export finance functions from IDBI. Unit banks operate with minimal branches. Citi and ING are examples of universal banks that provide a wide range of financial services. Statement 3 is incorrect as unit banks are not defined by having one or two branches in the context of modern banking definitions.

An underwriter is a specialized employee of an insurance company tasked with evaluating risk and determining the appropriate premium rates for applicants. Their professional judgment is essential for maintaining the insurer's financial stability by ensuring that the premiums collected are commensurate with the risk assumed by the company, thus validating both statements provided.

SIDBI was established in 1990 through an Act of Parliament to serve as the principal financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprise (MSME) sector. By taking over the small-scale industry financing portfolio from IDBI, SIDBI was able to focus exclusively on the unique credit needs and growth requirements of small businesses in India.

Bank deposits are classified as transactional products because they facilitate the daily movement of funds, payments, and liquidity management for individuals and businesses. Transaction banking services provided by financial institutions include domestic and international payment processing, cash management, and trade finance, which are essential for maintaining the operational flow of capital in an economy.

EXIM Bank provides various financial products to support Indian companies expanding abroad, including equity financing and guarantees. However, providing 100% of the loan amount extended by an Indian company to its overseas subsidiary is generally not a standard product offering, as it would exceed typical risk exposure limits and regulatory guidelines for overseas direct investment financing.

IDBI historically performed the function of refinancing loans granted by other financial institutions to exporters. By providing refinancing facilities, IDBI enabled primary lenders to extend more credit to the export sector, thereby supporting the growth of international trade and ensuring that exporters had adequate access to working capital and long-term financing for their operations.