Investment banks are crucial for which of the following?

Investment banks play a vital role in the economy by primarily focusing on raising capital for businesses and providing advisory services related to financial transactions. They assist companies in navigating complex financial markets to procure the necessary funds for expansion, mergers, acquisitions, or other capital-intensive projects. This involves underwriting securities, which means they help issue stocks and bonds to investors, ensuring firms can access the funds they need.

Additionally, investment banks provide expert advice on the structuring and execution of financial deals, leveraging their market knowledge and experience to guide businesses through potential challenges and opportunities. This contribution to capital markets is essential for fueling economic growth and innovation, positioning investment banks as key players in the financial landscape.

As for the other options, they do not accurately reflect the primary functions of investment banks. Managing personal savings accounts and offering retail banking services are typically functions of commercial banks, while setting interest rates for mortgages is mainly governed by market forces and central bank policy rather than the direct involvement of investment banks.