Question 1:
Illustrate the major functions and components of the financial system making reference to Rodrigues Island. Suggest measures which could be executed to develop the financial system.
Question 2:
(a) What is the banking principles illustrate with help of instance?
(b) List all the major items in the balance sheet of commercial bank and describe the conflicts when attaining the banking principles.
(c) How can a retail bank deal with the liquidity risk?
Question 3:
Illustrate the various techniques available to deal with exchange rate risk and interest risk through the financial markets.
Question 4:
What are the major functions and objectives of central Bank of Mauritius?
Question 5:
Explain the following phrases:
1. Demand for money
2. Banking regulation
3. Eurocurrency markets
4. Interest rate differentials
5. Asymmetric Information problems in financial markets
Question 6:
Why should bank soundness a concern of the public policy? Outline the major causes and economic effects of bank failures.