◈ Oracle PrepSign Up Free
O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2016 · Q91 Mark

When will a central bank act as lender of last resort to a commercial bank?

Awhen a commercial bank faces a liquidity crisis
Bwhen a commercial bank fails to make a profit
Cwhen a commercial bank needs to raise share capital
Dwhen a commercial bank reduces its lending rates

✓ Correct answer

A: when a commercial bank faces a liquidity crisis

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2016 Paper 1 Variant 2, question 9.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

Government and the macroeconomyMay/June 20121m

What would be most likely to reduce the rate of inflation?

Government and the macroeconomyMay/June 20121m

A government decides to sell to a private firm its monopoly supply of gas to households. How could the government pro…

Government and the macroeconomyMay/June 20121m

Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-pai…

Microeconomic decision makersMay/June 20111m

A major computer company announced that its profits had fallen below the level predicted. What might have caused this?

The allocation of resourcesMay/June 20111m

Which change must occur when a firm starts to experience diseconomies of scale?

The allocation of resourcesMay/June 20111m

If a firm increases its output in the short run, what will happen to its average fixed cost (AFC)?

← Browse all past-paper questions

© 2026 Oracle Prep