The Stability of the Financial System Is Enhanced by the Ability

question 113

Multiple Choice

The stability of the financial system is enhanced by the ability of central banks to:

• A)Be a lender of last resort
• B)Provide loans to insolvent banks
• C)Provide deposit insurance
• D)Convert poorly run banks into branches of the central bank

---

Definitions:

Other Expenses

Costs that are not directly tied to production, sales, or main operations, such as interest payments or losses from asset sales.

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount for a particular period or category.

Net Operating Income

Net Operating Income is the total revenue from operations minus operating expenses, excluding taxes and interest. It highlights a company's operational efficiency.

Revenue And Spending Variances

The differences between budgeted and actual figures for revenue and expenditures, used in budgetary control and financial analysis.