Which of the following would best describe the role of a merchant bank?
A)Securities lending
B)To act as a banker and financial agent to the federal government
C)To provide borrowing and lending services, primarily to the business sector
D)To provide loans to the corporate sector through receipts of insurance premiums

Question

Quizplus · Accepted Answer

to provide borrowing and lending services, primarily to the business sector and high network individuals.
Key Takeaway: Merchant banks were badly hit by the global economic crisis and seriously tightened lending. This led to increased cost of capital and major liquidity issues for many companies. You should understand these key points and how they impacted businesses. Many managers have spent a substantial amount of their time dealing directly with these issues.

Which of the Following Would Best Describe the Role of a Merchant