Which among the following is not true with regard to merchant banker? 1. It can accept deposits. 2. It can advance loans. 3. It can do other banking activities. 4. It can be managed to a public issue. Select the correct answer:

The correct answer is D. Both 2 and 4.

A merchant banker is an intermediary between investors and businesses. They help businesses raise capital by issuing shares or bonds, and they also help investors find investment opportunities. Merchant bankers cannot accept deposits or advance loans, as these are activities that are reserved for banks. However, they can manage a public issue, which is the process of raising capital by issuing shares to the public.

Here is a brief explanation of each option:

1. It can accept deposits.

Merchant bankers cannot accept deposits. This is because they are not licensed to do so. Only banks are allowed to accept deposits.

1. It can advance loans.

Merchant bankers cannot advance loans. This is because they are not licensed to do so. Only banks are allowed to advance loans.

1. It can do other banking activities.

Merchant bankers cannot do other banking activities. This is because they are not licensed to do so. Only banks are allowed to do other banking activities.

1. It can be managed to a public issue.

Merchant bankers can manage a public issue. This is because they are experts in this area. They can help businesses raise capital by issuing shares to the public.

I hope this helps!