In addition to the normal services as defined in the Banking Regulation Act, banks also undertake activities like project appraisal, underwriting of issue, technical know how etc. What is this business called?
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Consultancy services
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Bancassurance
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Merchant banking
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Advisory services
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Non-fund credit business
C
Correct answer
Explanation
A merchant bank is a company that deals mostly in international finance, business loans for companies and underwriting. These banks are experts in international trade, which makes them specialists in dealing with multinational corporations. A merchant bank may perform some of the same services as an investment bank, but it does not provide regular banking services to the general public.