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What is investment banking?

1. Accepting deposits and giving loans
2. Providing insurance products
3. Managing personal savings accounts
4. A division of banking related to capital creation for companies and governments

Correct answer: A division of banking related to capital creation for companies and governments

Solution

Investment banking is a specific division of banking that assists companies, governments, and other entities in raising capital through underwriting, facilitating mergers and acquisitions, and structuring complex financial transactions. It is distinct from commercial banking (deposits/loans) and insurance.

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