Question

Which of the following is/are the function(s) of central bank?

Options

• Banker's bank

• Lender of the last resort

• Receive deposits from the public and business firms

• Provide short-term and medium-term loans to customers

Answer 1

Banker's bank and Lender of the last resort

Explanation:

The functions of a central bank include acting as the "banker's bank" and serving as the "lender of last resort." However, it does not typically receive deposits from the public or provide short-term and medium-term loans to individual customers; these functions are usually performed by commercial banks.