(a)Discuss how investment banks operate, how they function in our financial system, and how they earn money and the importance of investment bank's reputation to its survival.

(b)Explain how Reserve Bank of Australia (RBA) retain control of interest rates. Explain which of the methods are more suitable in the current COVID-19 capital market.

(c) Explain how increased government bond issuance can result in a decrease of corporate bond issuance and lower corporate bond prices.

(d) When the issue is right there is always an offer to the existing shareholders to subcribe to the new capital. Where this new capital are at discounted price