Canada's 5 largest investment banks are owned by Canada's largest banks. This is because:

a) They are all ultimately owned by the taxpayer

b) Investment banks must have bank depositor's cash to give them liquiditiy

c) Ultimately, they are in the same kind of business

d) Bank of Canada regulation requires that investment banks be owned by banks

I believe the correct answer should be c) Investment banks and the big 5 are just branches of each other, they do the same thing.

The correct answer is c) Ultimately, they are in the same kind of business.

Explanation:
Canada's 5 largest investment banks being owned by Canada's largest banks is primarily because they are in the same kind of business. Investment banking and commercial banking are both branches of the financial industry, but they serve different purposes.

Commercial banks, such as Canada's largest banks, primarily offer banking services to individuals and businesses. These services include accepting deposits, granting loans, managing savings, and facilitating transactions. Commercial banks generate revenue from the interest they charge on loans and the fees they collect for services.

On the other hand, investment banks specialize in providing various financial services to corporations, governments, and institutional clients. These services include underwriting securities offerings, facilitating mergers and acquisitions, advising on corporate finance matters, and assisting with capital raising activities. Investment banks generate revenue from fees for these services and trading activities.

By owning investment banks, the largest Canadian banks can provide a full-service range of financial products and services to their clients, combining commercial banking with investment banking capabilities. This integration allows them to offer comprehensive solutions to meet their clients' diverse financial needs.

It's worth noting that option a) (They are all ultimately owned by the taxpayer) is incorrect because the ownership of Canada's largest banks and investment banks is not directly linked to the taxpayer. Option b) (Investment banks must have bank depositors' cash to give them liquidity) is partly correct, as investment banks may rely on funding sources like deposits, but it is not the sole reason for their ownership structure. Lastly, option d) (Bank of Canada regulation requires that investment banks be owned by banks) is incorrect because the ownership structure is not mandated by the Bank of Canada regulations but is a strategic decision made by the banks themselves.