The Principal Purpose of a Central Bank Acting as a Lender

question 62

Multiple Choice

The principal purpose of a central bank acting as a lender of last resort is to:

• A) prevent the failure of insolvent financial institutions.
• B) maintain the liquidity of the financial system.
• C) provide adequate funds to finance the government's spending.
• D) keep interest rates as low as possible.

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Definitions:

Number Of Employees

The total count of individuals employed by a business or organization at a specific point in time.

Step-down Method

A method used in accounting to allocate service department costs to production departments in stages.

Administrative Department

A unit within an organization responsible for managing and providing support services and resources to facilitate operational activities.

Custodial Department

A division or department within an organization responsible for cleaning, maintenance, and upkeep of facilities.