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      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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