. Examine the key differences between investment and commercial banking. Explain why investment banking is considered...

Question

Question

. Examine the key differences between investment and commercial banking. Explain why investment banking is considered inherently more risky

Answer 1

Answer #1

Investment banking is done for a large sum of money .

so there is a Credit risk, market risk ,interest rate risk etc.

Investment banking provides a huge amount of returns with high risk as compared to normal commercial banking.

since in investment banking, the investment being done in the other areas so there is high chance of losing money so high risk as well.

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Answer 2

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