BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The management of the customers securities
|
|
|
The management of the portfolio
|
|
|
The management of projects and counselling as well as appraisal
|
|
|
None of the above
|
Detailed explanation-1: -A merchant banker cannot carry on any business other than those pertaining to the securities market, according to the capital markets regulator Sebi.
Detailed explanation-2: -Merchant banks specialize in international trade, providing services for multinational corporations. Unlike retail or commercial banks, merchant banks do not provide financial services to the general public.
Detailed explanation-3: -Merchant banks help in processing loan applications for short and long-term credit from financial institutions. They provide these services by estimating total costs involved, developing a financial plan for the entire project, as well as adopting a loan application for commercial lenders.
Detailed explanation-4: -Merchant bankers helps firms or companies in raising finance by way of issue of a share, bank loans, debenture etc. merchant bank do not provide financial service to normal public.