What does merchant banking typically involve?

Merchant banking involves providing specialized banking services that are primarily focused on businesses rather than individual consumers. This includes activities such as underwriting securities, facilitating mergers and acquisitions, and offering advisory services for financial transactions. Merchant banks often assist companies in raising capital through equity or debt offerings and may also provide management consultancy services.

In contrast, the other options describe services that are more aligned with retail banking. For instance, personal savings accounts, retail banking functions, and home mortgages cater to individual consumers rather than corporate clients. Merchant banking, therefore, is distinct in its emphasis on providing financial services and strategic guidance to businesses, which is why the choice highlighting underwriting and fundraising for businesses is the correct answer.