QUESTION 8 1.00000 P Financial intermediaries are different from investment banking houses in that financial intermediaries issue their securities to obtain funds from savers and then use the fund to purchase other business\'s securities, while investment banking houses do not issue their securities. Instead, savers\' money merely passes through investment banking houses. e True False Solution Answer: This statement is false. Financial Intermediaries- These are the financial institutions that work as mediator between two parties, they include commercial banks, investment bank, mutual funds, NBFCs, pension fund etc. These intermediaries channel funds from those who have it in excess to those who need funds. Investment banking- It is special branch of banking that provides many services like underwriting, broking, portfolio management, M&A, restructuring, consultancy etc. These help the new firms to raise capital from the market and go public by issuing shares to the general public..

1. QUESTION 8 1.00000 P Financial intermediaries are different from investment banking houses
in that financial intermediaries issue their securities to obtain funds from savers and then use the
fund to purchase other business's securities, while investment banking houses do not issue their
securities. Instead, savers' money merely passes through investment banking houses. e True
False
Solution
Answer: This statement is false.
Financial Intermediaries- These are the financial institutions that work as mediator between two
parties, they include commercial banks, investment bank, mutual funds, NBFCs, pension fund
etc. These intermediaries channel funds from those who have it in excess to those who need
funds.
Investment banking- It is special branch of banking that provides many services like
underwriting, broking, portfolio management, M&A, restructuring, consultancy etc. These help
the new firms to raise capital from the market and go public by issuing shares to the general
public.