Concept:A merchant bank is a financial institution that provides specialized services such as bill acceptance and equipment leasing to businesses.
Explanation:Merchant banks mainly deal in corporate finance, trade finance, and investment-related activities.
They accept bills of exchange to help traders finance their transactions.
They also offer equipment leasing to help firms acquire assets without large upfront payments.
Development banks focus on long-term financing for industrial and agricultural projects.
Central banks regulate a country's money supply and banking system.
Insurance companies provide financial protection against risks.
Since acceptance of bills of exchange and equipment leasing are key functions of a merchant bank, this option is correct.
Answer:Option A – Merchant Bank.