7. The Financial Market and the Central Bank -Does the host country has a strong financial market?
7. The Financial Market and the Central Bank -Does the host country has a strong financial market?
(a) What are the responsibilities of the central bank for regulatory control with focus on the commercial and investment banking systems?
(b) What measures are in place to protect clients in the event a bank fails in the host country?
(c) To what extend does the Central Bank of the host country dictate the liquidity management policy pursued by individual banks to ensure the soundness of the banks (as a MNC you need to have a bank account in the host country, you need to investigate the soundness of the financial market).
(d) Discuss how does the Central Bank manages money supply in the host country and compare it with the Central Bank of Canada?
(e) If the Central Bank busy $100M bonds from the public and there is a decline in required reserve ratio, what will happen to the money supply in the host country? Discuss
(f) Describe how your MNC (a customer of a bank in the host country) can affect the money supply in the host country? Explain using examples.
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