Q1. Which is not a service investment banks provide?
underwriting securities
financial advising
mergers & acquisition
review prospects
they offer all the above services
Q2.You are a wheat producer. Unfortunately, wheat
price fluctuates a lot, which can affect your profit in future. To
eliminate this price risk, you should now _______
create a forward contract and agree to buy wheat at a fixed
price.
create a forward contract and agree to sell wheat at a fixed
price.
produce more wheat
do nothing
Q1 they offer all the above services
Q2 create a forward contract and agree to sell wheat at a fixed price.
Q1. The investment bank offer all the above mentioned services to its client. Unlike normal banks, An investment bank is the financial services company or corporate division that engages in advisory-based financial transactions on behalf of its client
Q2. The wheat producer can enter into a future contract with distributor to supply the produce at a price fixed today and ensure that his product is getting the desired rate
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