The function of the Central Bank as the lender of last re...
The function of the Central Bank as the lender of last resort means that when all other sources fail
The consumer can always borrow money from the Central Bank
The government can ask the Central Bank to print more money
Commercial banks can raise loans from the Central Bank
Commercial banks can deposit money with the Central Banks
Correct answer is C
Central banks act as lenders of last resorts to commercial banks by lending them funds so as to stay afloat when the need arises. If banks get into liquidity shortages (run out of money), then the Central Bank is able to lend the commercial bank sufficient funds to avoid the bank running out of funds.
If a bank ran out of money, people would lose confidence and want to withdraw their money from the bank. The central steps in by lending these banks money so as they can remain in business.
At the point of profit maximization by a firm, marginal cost is ...
Data presented in a circular chart is known as ...
Identify one of the following which can NOT be used to close deflationary gap ...
A change in supply is best described as a ...
Economics is a social science because it ...
Holding money to take care of contigencies is? ...
The Nigeria Bank for Commerce and Industry is? ...
In a capitalist economy, factors of production are owned and controlled by the _____? ...
Price elasticity supply measures the responsiveness of quantity supplied to ...