Economics 2281 · O Level · Money and banking

Money and banking — practice question

A central bank can serve as a lender of last resort, particularly during a financial crisis. Why is this function carried out?

  • Ato cover credit card debts of consumers
  • Bto provide liquidity to the banking system
  • Cto remove failing banks from the financial system
  • Dto safeguard the profits of the banking system

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