How can a retail bank deal with liquidity risk, Business Management

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QUESTION 1

Discuss the main components and functions of the financial system making reference to Rodrigues Island. Suggest measures which could be implemented to develop the financial system.

QUESTION 2

(a) What are the banking principles?

(b) List down the main items in the balance sheet of a commercial bank and explain the conflicts when attaining the banking principles.

(c) How can a retail bank deal with liquidity risk?


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