Q. Consider the following statements:

1. Mixed banking is a combination of deposit banking and investment banking
2. When banks undertake the activities of wholesale and retail banking together, it is called universal Banking

Which of the above statements is/are correct?
Answer: Both 1 & 2
Notes: Mixed banking basically stands for a combination of two pure banking models like commercial banking and investment banking in different proportions. Mixed banking is an approach where banks undertake both commercial and industrial banking and is a popular banking model in countries like Germany and Japan. A universal bank is a financial service conglomerate combining retail, wholesale and investment banking services under one roof.