Question

    Which of the following services is typically offered by

    merchant banks but not by traditional commercial banks?
    A Offering personal loans and credit facilities. Correct Answer Incorrect Answer
    B Providing advisory services for mergers, acquisitions, and restructuring. Correct Answer Incorrect Answer
    C Accepting customer deposits and offering savings accounts. Correct Answer Incorrect Answer
    D Managing retail banking services and mortgage lending. Correct Answer Incorrect Answer
    E Providing business loans for small enterprises. Correct Answer Incorrect Answer

    Solution

    Merchant banks provide  specialized form of financial services offering services which include helping businesses raise capital, managing public issues, and providing advisory services for  on mergers, acquisitions, and corporate restructuring. These are typically not provided by commercial banks, which are engaged in the business of accepting public deposits and lending.

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