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Give Reason Or Explain. Central Bank Acts as a Lender of the Last Resort. - Economics

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प्रश्न

Give reason or explain.

Central Bank acts as a lender of the last resort. 

टीपा लिहा

उत्तर

The Central Bank acts as the lender of last resort for the commercial banks and the government. When a commercial bank faces financial crisis and fails to obtain funds from other sources, the Central Bank plays the vital role of ‘lender of last resort’ and provides them with financial assistance in the form of credit.

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Central Bank Function - Goverment Bank
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पाठ 13: Central Banking - Exercise 2 [पृष्ठ १२१]

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मायकल वाझ Economics [English] 12 Standard HSC
पाठ 13 Central Banking
Exercise 2 | Q 2.2 | पृष्ठ १२१
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