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QUESTION 1

(a) The Central Bank of a country performs several key functions within its economy. Besides being the Regulator and Supervisor of Banking Institutions, discuss the other functions of the Central Bank.

(b) There has been much debate recently regarding excess of liquidity within the Mauritian domestic banking sector. Explain the stand taken by the Regulator and the Government on this issue.

QUESTION 2

Discuss the differences between the banking system in the United Kingdom and that in Germany.

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