In situations like that, central banks act as the lender of last resort. Central banks have traditionally held this role because they are primarily the ones responsible for ensuring that financial markets function smoothly and the financial system is stable.
Which bank is the lender of last resort?
As a Banker to Banks, the Reserve Bank also acts as the 'lender of the last resort'.
Which bank is called lender of first resort?
RBI as the lender of first resort.
Who is lender of last resort Mcq?
A central bank is a lender of last resort.