Question
Define or explain the concept of Lender of the last resort .
Solution
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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Solution Define Or Explain the Concept of Lender of the Last Resort . Concept: Definition - Central Bank.
