The differences between the central bank and commercial bank is that the former ____________
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Correct Answer: Option D
Explanation:
The central bank serves as the lender of last resort to commercial banks and other eligible financial institutions when they face serious liquidity problems and cannot obtain funds from other sources. This function helps maintain confidence and stability in the banking system.
The central bank serves as the lender of last resort to commercial banks and other eligible financial institutions when they face serious liquidity problems and cannot obtain funds from other sources. This function helps maintain confidence and stability in the banking system.