Which of the following is a financial service provided by investment banks?

• A. Real estate appraisal services
• B. Retail banking for consumers
• C. Corporate finance and capital raising
• D. Insurance underwriting

Answer: (C)

Investment banks play a crucial role in the financial services industry, particularly in corporate finance and capital raising. This area involves advising companies on various financial matters, including mergers and acquisitions, restructuring, and the issuance of equity and debt. Investment banks help firms access capital markets to raise funds for their operations or growth initiatives. They also assist in valuing companies and negotiating transactions, which are essential functions for corporations looking to expand or improve their financial health.

In contrast, the other options relate to different sectors of finance. Real estate appraisal services pertain to valuing properties and are typically offered by specialized real estate firms, not investment banks. Retail banking generally refers to services that cater directly to consumers, such as savings accounts, personal loans, and mortgages, which are provided by commercial banks. Insurance underwriting involves assessing risk and determining the premiums for insurance coverage, a function performed by insurance companies rather than investment banks. Thus, corporate finance and capital raising is uniquely aligned with the primary services offered by investment banks.