In: Finance
Mark the correct answer
Select one:
a. An analyst can be classified as a "trader" or "broker".
b. A commercial bank is an institution that helps companies in their financing and securities (bonds, shares, etc.) issuance processes
c. No answer
d. None of the above is correct.
e. An investment bank is an institution that offers deposits and loans
An analyst can be defined as an individual who reviews and
evaluates the specific data or information related to a particular
topic or area. There are analysts dedicated for particular fields.
An analysts can get formal education and certification or can do so
on the basis of experience and expertise.
In finance terms-A financial analyst shall evaluates and looks for
the economic and financial information related with stocks and
other securities.While a trader is a person who executes the stock
trading that is buying and selling of stocks; and a broker is a
person who arranges financial deals between two or more parties and
charges commission for the deal cracked by him.
So, cosidering the above a trader or broker can be an analysts; but
not necessarily the analysts can be classified as traders or
brokers only.
So, the first option is incorrect.
A commercial bank can be defined as an institution that is
established primarily to provide services like accepting and
lending money. If a particular company is in need of funds the
company can approach the commercial banks and they can be given
loans at an interest rate. The company can even contact the bank
with respect to giving aid during the time of issue of securities.
The bank can act as an agent; and even the money to be paid/
received during the time of issuance or redemption can be routed
through the bank.
So, the option b is correct.
An Investment bank can be defined as a financial institution,
that provides the services of underwriting securities, brokerage on
various services and etcetra. An investment bank is not accepting
deposits or giving loans ; these functions are in the purview of
commercial bank.
So, the e option is incorrect as well.
Since one option is already correct this means option C and D
automatically stands void.
So, the answer is Option B.