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    Question

    In which of the following activities do merchant banks

    typically participate but investment banks generally do not?
    A Underwriting of public securities Correct Answer Incorrect Answer
    B Providing venture capital and seed funding to startups Correct Answer Incorrect Answer
    C Advisory services on mergers and acquisitions Correct Answer Incorrect Answer
    D Conducting research on equity markets Correct Answer Incorrect Answer
    E Asset management services for high-net-worth individuals Correct Answer Incorrect Answer

    Solution

    Merchant banks often provide venture capital and seed funding to startups, especially in their early stages of growth. Investment banks, on the other hand, focus more on large corporations and public market activities.

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