Question

While they now have many similar activities, there are still some differences between an investment bank...

While they now have many similar activities, there are still some differences between an investment bank and a commercial bank. What are the two biggest differences? Explain.

Homework Answers

Answer #1

2 Biggest differences between investment and commercial banks

1. Investment banks do not directly receive deposits of public in terms of demand deposits and fixed deposits and receive only from few investors whereas Banks get their funds from deposits by public.
2. Investment banks are involved in IPO, underwriting , mergers and acquisitions , etc . Commercial banks primary purpose is to lend money to business and small retail loans.

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of...
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S.  While there are many similarities between the two systems, there are also some significant differences.  After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would. what is a differences that exist...
Fundamental Differences between the Islamic banking and Traditional banking. What are the activities which are permissible/prohibited...
Fundamental Differences between the Islamic banking and Traditional banking. What are the activities which are permissible/prohibited in the two types of banking mentioned above? What are the motives for the banks in the two types of banking mentioned above? What are the procedures related to lending/saving in the two types of banking mentioned above? What rules and regulations do banks follow in the two types of banking mentioned above? What are the opinions of some big individual as well as...
What are some of the main differences between a manufacturing and a service system? Given these...
What are some of the main differences between a manufacturing and a service system? Given these differences, what concerns does a service provider have that a manufacturing firm does not have in designing the service?
Part 2 Use the concepts of gross investment and net investment to explain the differences between...
Part 2 Use the concepts of gross investment and net investment to explain the differences between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain how it is impossible for gross investment to be less than zero, even though net investment can be positive, negative, or zero. What real world examples can you provide?
The ABC Bank takes funds from depositors and gives out commercial, housing and car loans. Now,...
The ABC Bank takes funds from depositors and gives out commercial, housing and car loans. Now, instead of keeping the housing and car loans on its books, it sells them to a hedge fund. However, the borrowers still make payments to ABC Bank which then remits the payments to the hedge fund. The bank receives a fee from the hedge fund for servicing the loans. Discuss two (2) advantages to ABC Bank from switching its housing and car loans business...
In your own words describe how they are similar(compare) and also explain the differences(contrast) between the...
In your own words describe how they are similar(compare) and also explain the differences(contrast) between the defs. of recreations, leisures, and plays. Must be a complete paragraph.    Note:: defs. = definitions 1. describe each defs. 2. What do the defs.have in common 3. Finally, explain How are the defs. different.
Many brands that have gone global have found that international markets now comprise most of their...
Many brands that have gone global have found that international markets now comprise most of their annual increased growth. What are some of the challenges and advantages you see in developing and implementing a global brand strategy? Explain.
1. Explain the differences between a bank draft and an ordinary check. 2. What are considered...
1. Explain the differences between a bank draft and an ordinary check. 2. What are considered authorized signatures on a negotiable instrument? Provide an example. 3. What is the EFTA? How does it support consumer rights?
Many companies have experienced significant declines in operational activities and/or additional operational costs because of the...
Many companies have experienced significant declines in operational activities and/or additional operational costs because of the COVID-19 pandemic. Some of the declines may be temporary while others reflect longer lasting or even permanent shift in the business or industries in which these companies operate. Management should assess the existing and anticipated effects of COVID-19 on the company's activities. In this post, describe what challenges management faces associated with the valuation of definite- and indefinite-lived assets for financial reporting under U.S....
Note the differences between documenting juvenile infractions versus that of adult offenders. What are some of...
Note the differences between documenting juvenile infractions versus that of adult offenders. What are some of these differences specifically? Do you think that there should be differences in how the juvenile probation system and adult probation system work? Why or why not? Explain your answer, citing at least one reputable source backing your opinion
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT