Which of the following central bank functions inspires confidence in the banking system in case of emergency?
Answer Details
The function of the central bank that inspires confidence in the banking system in case of emergency is the "lender of last resort." This means that the central bank serves as a source of funds for banks and financial institutions that are experiencing financial difficulties and are unable to obtain funds from other sources. By providing this function, the central bank helps to prevent bank failures and the potential collapse of the banking system, which could have serious economic consequences.