Concept of rules and discretionary central banking policies, Marketing Management

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Question 1:

(a) Clearly explain the concept of rules versus discretionary central banking policies.

(b) Discuss the various risks faced by the financial system and discuss measures to control and mitigate such risks. Can the Basle II Framework eliminate these risks?

Question 2:

" the Managed Float system of exchange rate is regarded as being too costly to operate but it is a tool to control an economy's health." Comment and discuss.

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