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प्रश्न
"The central bank is the lender of the last resort." Explain.
Central Bank is the "lender of the last resort". Justify either for or against.
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उत्तर
- Commercial banks can seek financial support from other banks.
- However, other commercial banks may not be able to provide funds to the bank in need. In this situation, the central bank gives funds to a commercial bank through loans or securities purchases.
- It helps to prevent widespread financial panic by stepping in when no other lenders are available.
- Maintaining confidence in the financial sector benefits the economy as a whole.
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संबंधित प्रश्न
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Fixed Deposit Account and Recurring Deposite Account.
Choose the Correct Answer.
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Give the meaning of Commercial Banks?
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"A central bank is a bankers' bank." Explain.
What is meant by an overdraft facility given by a commercial bank?
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______ is a Banker's Bank.
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