A Role of the Central Bank Is to Act as a Lender

question 18

True/False

A role of the central bank is to act as a lender of last resort in a systemic crisis and to provide regulations that reduce the probability of a bank crisis.

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Definitions:

Corporation

A business structure that creates an entity separate from its owners and managers.

Public Company

A corporation whose shares are traded openly on stock exchanges, subject to regulatory oversight and required to disclose financial and other significant information.

Certified Public Accountant

A designation given to an accountant who has passed a standardized CPA exam and met government-mandated work experience and education requirements.

Sole Proprietorship

A sole proprietorship is a business owned and operated by one person, where there is no legal distinction between the owner and the business entity.