The lender of last resort is a function of a) Rural Bank b) Post office c) Central Bank d) Commercial bank
Question
The lender of last resort is a function of
a) Rural Bank
b) Post office
c) Central Bank
d) Commercial bank
Solution
The function of the lender of last resort is typically performed by the Central Bank. So, the correct answer is:
c) Central Bank
Similar Questions
What is a lender of last resort?Select the correct answer below:A lender of last resort is an institution that provides short-term emergency loans in conditions of financial crisis.A lender of last resort is an institution that operates between a saver with financial assets to invest and an entity that will borrow those assets and pay a rate of return.A lender of last resort is an aid in an economy's exchange of goods and services for money or other financial assets.A lender of last resort is a fund that a bank keeps on hand that is not loaned out or invested in bonds.
Which institution is the "lender of last resort" for banks in India?The Central Government of IndiaSecurities and Exchange Board of India (SEBI)Insurance Regulatory and Development Authority of India (IRDAI)The Reserve Bank of India (RBI)
Business has not been good for Jake’s bakery. Jake has a poor credit rating, and his business’s credit limit has been exhausted. Which of the following institution would be the lender of last resort for Jake?Multiple Choicea brokerage firman investment firma finance companya mutual fund provideran insurance company
Do you think that the Central Bank’s role as a lender of last resort leads financial institutionsto make more risky investments? What problems might the economy face if these institutionswere left to fail?
A commercial bank can receive a loan from another commercial bank in the Group of answer choicesFederal funds marketbank loan marketFed marketDiscount market
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