O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2018 · Q81 Mark
A central bank acts as a lender of last resort especially in times of financial crisis. What is the purpose of this function?
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
✓ Correct answer
B: to provide liquidity to the banking system
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