The lender of last resort in the banking system is the

Assessment: WAEC SSCE - Economics - 2005 (Objective) Subject: Economics

Question 1 Report

The lender of last resort in the banking system is the
Answer Details
The lender of last resort in the banking system is the central bank. This means that when banks face a shortage of funds or are unable to borrow from other banks, they can borrow from the central bank at a higher interest rate. The central bank acts as a safety net to prevent a bank run and to maintain the stability of the financial system. By providing liquidity to banks, the central bank helps to ensure that they can continue to operate and meet the financial needs of their customers.
Read lesson note on Banking (JAMB)
View Answer

Related Questions

1

The production factor, whose entire world supply is fixed is
2

when a worker changes from one tye of job to another, it is called
3

when all factors input are reduced by half, the production possibility curve will shift
4

The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-shirt . This implies that
5

A list of consumer's wants arranged in order of priorities is known as
6

Farming, mining and fishing are
7

Economic activities are undertaken to solve the problem of
8

The remuneration of the entrepreneur as a factor of production is called

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning