Question

    The activities of the bank covering issue and underwriting of shares and debentures for its clients are known as:

    A Treasury banking Correct Answer Incorrect Answer
    B Exchange banking Correct Answer Incorrect Answer
    C Industrial banking Correct Answer Incorrect Answer
    D Developmental banking Correct Answer Incorrect Answer
    E Merchant banking Correct Answer Incorrect Answer

    Solution

    Merchant bank is an institution that covers a wide range of activities such as underwriting of shares, portfolio management, project counselling, bankers to issue, credit syndication, insurance, etc. They render these services for a fee. Both commercial and investment banks may engage in merchant banking activities.

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