What makes advising on mergers and acquisitions particularly profitable for investment banks relative to other services that they provide?

What will be an ideal response?


Unlike other activities, an investment bank does not need to invest its own capital. Its only significant cost is the salaries of the bankers involved.

Economics

You might also like to view...

Capital per person k is higher in Japan than in the United States. As a result ________

A) per capita income is higher in Japan B) total factor productivity is higher in Japan C) the marginal product of capital is higher in Japan D) all of the above E) none of the above

Economics

Trade should be allowed only if the net benefits are positive—that is, the benefits from trade are larger than the costs of trade

a. True b. False Indicate whether the statement is true or false

Economics

If the demand for a consumer good decreases, the demand for resources required to make the good will

a. increase. b. remain the same, but the quantity demanded will increase. c. decrease. d. increase or decrease depending on whether the demand for the product is elastic or inelastic.

Economics

Which of the following claims is consistent with the views of mainstream economists?

a. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall. b. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise. c. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall. d. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.

Economics