Question regarding rank condition

hello, I’m using Dynare 4.1.1 in Matlab 7.10.0.499(R2010a) with Mac.
I built simple two country business cycle model with 4 forward-looking variable: b(+1), b*(1), c(+1) and c(+1), bunch of static variables and then tried to solve the model.
However, I got message saying:

EIGENVALUES:
Modulus Real Imaginary

       0.818            0.818                0
        0.94             0.94                0
       0.994            0.994                0
         Inf              Inf                0
         Inf              Inf                0
         Inf              Inf                0

There are 3 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Error using ==> print_info at 45
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure

Error in ==> stoch_simul at 46
print_info(info, options_.noprint);

Error in ==> Nov8e at 320
info = stoch_simul(var_list_);

Error in ==> dynare at 132
evalin(‘base’,fname) ;

My question is that generally what should I consider to work on if I see the message that “The rank condition ISN’t verified”?

Just in case, I’m attaching the mod file I was using to this posting. Please help me regarding this rank condition.
Any tip or any comment will be really helpful regarding this. Thank you so much for reading this.
simpletwo.mod (2.62 KB)

This error message means that your model, with the parameterization that you gave, does not support a unique stable rational expectations equilibrium.

You need to change your model equations or your parameterization.

Search through the forum archives, this question has been answered many times.

Best,