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.