6. The Financial Market and the Central Bank -Does the host country has a strong financial market? (40 marks) (a) What are the responsibilities of the central bank (for the host country) for regulatory control with a 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 extent 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 an 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 the money supply in the host country and compare it with the Central Bank of Canada? (e) If the Central Bank (for the host country) buys $100M bonds from the public and there is a decline in the 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. (g) Your MNC will need to repatriate revenue to the home country, how will repatriation of revenue impact the home and host country, explain using examples (h) Your MNC will need start-up finance, from question 2, from the first submission Explain how your method of finance will impact the home and host country. Use examples to amplify your response (i) It is important that commercial banks have adequate capital a. Explain why it is important b. How does it benefit the public, shareholders, and clients c. How it does not benefit the public, shareholders, and clients