What does the term "lender of last resort" refer to in the context of central banking?
مرکزی بینکاری کے تناظر میں "آخری قرض دہندہ" سے کیا مراد ہے؟
- A bank providing loans to commercial banks during times of financial crisis
- A Commercial bank providing loans to the central bank
- A government agency providing loans to individuals and businesses
- A central bank offering loans to foreign governments
Explanation
- The Lender of Last Resort is the central bank role.
- It provides emergency funds to commercial banks.
- This happens during financial crisis or liquidity shortage.
- It helps maintain banking system stability.
Last verified on 24-04-2026
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