UPSC PRELIMS · ECONOMICS · LENDER OF LAST RESORT
In India, the central bank's function as the 'lender of last resort' usually refers to which of the following? 1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficits Select the correct answer.
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EXPLANATION
Lender of last resort refers to providing emergency liquidity to banks facing temporary liquidity stress.
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