Discussion Post: Central Bank
The Financial Market and the Central Bank -Does the host country has a strong financial market?
• What are the responsibilities of the central bank for regulatory control with focus on the commercial and investment banking systems?
• What measures are in place to protect clients in the event a bank fails in the host country?
• 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).
• Discuss how does the Central Bank manages money supply in the host country and compare it with the Central Bank of Canada?
• 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
• 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.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.