Banks or financial institutions that advise companies and manage their equity and debt requirements through the floatation and sale or purchase of stocks and bonds are called:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Merchant bankers
Merchant bankers, also called investment bankers, advise companies and manage their equity and debt needs. They do this through the floatation and sale or purchase of stocks and bonds.
Commercial and cooperative banks are financial institutions that mobilise and lend savings. A pension is a monthly payment to a retired worker, and pension funds invest such money.
NCERT (2026-27): Glossary: “Merchant Bankers – Banks or financial institutions, also known as investment bankers, that specialise in advising the companies and managing their equity and debt requirement (often referred to as portfolio management) through floatation and sale/purchase of stocks and bonds.” Glossary: “Financial Institutions – Institutions that engage in mobilisation and allocation of savings. They include commercial banks, cooperative banks, developmental banks and investment institutions.” Glossary: “Pension – A monthly payment to a worker who has retired from work.” |