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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.
संबंधित प्रश्न
How is a commercial bank different from a central bank?
Distinguish between:
Fixed Deposit Account and Recurring Deposite Account.
Explain the types of banks?
Give the meaning of Commercial Banks?
Briefly explain about Correspondent Banks?
What are Foreign Banks?
What are the objectives involved in Regional Rural Banks?
Mention the purposes of Agricultural and Cooperative banks?
Distinguish between the Central Bank and the Commercial Bank.
Public Banks are the banks which are ______.
______ is the apex institution of the country's monetary and banking structure where as ______ is one of the organs of the money market.
Central bank is owned by the ____ while commercial bank is owned by ______.
What is meant by the central bank of a country?
______ are of several types, e.g., commercial, central, industrial, merchant, exchange, agricultural, cooperative, postal and indigenous.
Regional Rural Banks (RRBs) are primarily established to ______.
Which bank specifically supports India’s exports and imports through long-term finance?
