"Lender of last resort" means that the central bank
a. has to lend money to failing banks.
b. should lend money to individuals if their bankruptcy would threaten the banking system.
c. should lend money to banks that are suffering short-term liquidity shortages.
d. should lend money to pay for government deficits.
e. None of the above
C
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When the supply of a good decreases and the demand for the good remains unchanged, consumer surplus
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.
In which case(s) does(do) a country's supply of loanable funds shift right?
a. both an increase in the budget deficit and capital flight b. an increase in the budget deficit, but not capital flight c. capital flight, but not an increase in the budget deficit d. neither an increase in the budget deficit nor capital flight