BANKING AFFAIRS

Detailed explanation-1: -Merchant banks are institutions that provide loans and capital for business enterprises.

Detailed explanation-2: -Q. Which of the following is true about merchant bank? Notes: Merchant bank underwrites securities for corporations, advices clients on mergers and get involves in in ownership of commercial ventures.

Detailed explanation-3: -They do not provide basic banking services. Among all the services, the focus is on financial advice. These banks primarily earn from the fee paid for advisory services. In addition, the bank invests depositors’ assets in financial portfolios-based on expected returns and risk-taking capacity.

Detailed explanation-4: -For a Career in Merchant Banking, prerequisites are that you need to really work hard and you need to really work smart also. You need to be either a CA, CS or MBA to get into this field. In fact, only CS doesn’t work, you need to be either an MBA or Chartered Accountant to really do well in this field.